An American investor has triggered widespread debate after labelling gold a “disastrous investment,” sparking backlash from traditional investors and gold enthusiasts alike.
In a tweet, Anthony Pompliano, Founder & CEO of Professional Capital Management questioned gold’s long-term performance and its relevance in modern investment portfolios. Pompliano also shared data comparing gold’s performance to Bitcoin over five years, revealing that gold has lost around 84% of its purchasing power relative to the cryptocurrency.
“Gold has been a disastrous investment since 2020. It has lost 84% of its purchasing power compared to a finite sound money asset like Bitcoin. Bitcoin is the hurdle rate. If you can’t beat it, you have to buy it,” he wrote on X.
“Gold has collapsed 84% in bitcoin terms since 2020While gold has been stable in US dollar terms, it’s lost nearly all its value in bitcoin terms over the last five years. One bitcoin now buys ~ 16x more gold today than 2020,” read the text on the graph.
The comment quickly went viral, with critics accusing the investor of ignoring gold’s role in preserving wealth during economic uncertainty, geopolitical crises, and currency fluctuations. Supporters of gold noted that while it may not offer high short-term gains, it provides stability, liquidity, and serves as a hedge against inflation.
Many mocked the investor’s take as short-sighted, while others echoed his view, arguing that gold lacks utility in today’s fast-paced financial environment.
One user wrote, “By that “logic,” every other investment has been a disaster since 2020. Gold has done much better than the S&P or real estate since 2020, despite falling versus Bitcoin. But that arbitrary time period proves nothing about gold and certainly doesn’t mean anyone has to buy Bitcoin.”
Another commented, “Gold is pretty solid. You should encourage folks to buy both. I love bitcoin but its good to have more than just that.”
A third said, “Bitcoin has lost almost half its purchasing power in Palantir terms in the last 5 years. Do you hear how stupid you sound?”
A fourth added, “Theres a good reason to own both. I hold more in gold though because I worry about the power going out. When EVERYTHING else goes wrong, if you dont hold it you dont own it.”