Gold’s Historic Crash Reignites Debate: Digital vs. Physical Gold as Safe Haven
Gold markets convulsed on October 21 as prices plummeted 6.3% in hours, erasing $2.1 trillion in value—the sharpest single-day decline since 2013. The metal's crash from $4,330 to $4,030 followed a record high of $4,381, sparking fresh scrutiny of its stability compared to cryptocurrency alternatives.
Precious metals broadly suffered, with silver and platinum mirroring gold's collapse. The selloff interrupted a two-month rally fueled by U.S. debt concerns and Fed rate cut speculation. Notably, Gold remains up 55% year-to-date—outperforming its trajectories during 9/11, the 2008 crisis, and COVID lockdowns.
Analysts like Coin Bureau's Nick Puckrin had warned of overheating prior to the crash. The event revives fundamental questions about gold's role as a store of value, particularly as the losses exceeded half the total crypto market capitalization.
