Gold beats untested virtual currencies

London

IN 2017 the price of gold rose 13 per cent, a creditable performance. In the same period, bitcoin delivered a 13-fold increase in value, prompting some to claim that cryptocurrencies could replace gold as an asset class.

However, though these digital assets may develop into an established part of the financial system, they are no replacement for gold, a dependable investment tool.

Gold is a highly liquid asset, and trades in an established regulatory framework. Its supp…