The Truth About Bitcoin, Gold, and Safe Investing Strategies, Ep #261

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Bitcoin and gold are two assets often hailed as safe havens and reliable stores of value. I explore whether bitcoin and gold really deliver the security investors hope for, or if, instead, they’re more about speculation than true investment. 

I’m helping you to look at the hard data and science behind financial decisions. Whether you’re curious about market volatility or searching for a dependable way to safeguard your wealth, this episode is packed with practical insights about the pros and cons of investing in Bitcoin or gold.

Outline of This Episode

  • [06:05] Bitcoin and gold are speculative, limited by supply and demand.
  • [09:29] Bitcoin is an unreliable store of value.
  • [13:57] Volatility and diversification in investing.
  • [16:58] Is gold really a safe haven for your money?
  • [20:18] Gold commercials push for sales due to high commissions, not safety.
  • [22:30] Investing relies on data and science to build successful portfolios, focusing on controlling taxes, expenses, and risk.

Finding Safe Havens for Your Money

What makes you feel secure? Fresh from a nine-night family trip to a volleyball tournament in Dallas, I’ve realised that my real safe haven isn’t a lockbox or a password, it’s my home and the daily routine I return to. More than that, his family represents his ultimate store of value, the core “asset” he’s committed to nurturing year after year.

For me, investing is just one facet of a broader stewardship, protecting not only wealth but also the relationships and routines that bring lasting fulfillment.

Bitcoin is a Volatile Gamble

Clients often ask me, “Can Bitcoin act as a reliable store of value?” so I’ve dug into the numbers. Since 2010, the annualized volatility of Bitcoin has been a staggering 76.9%, nearly five times greater than the already-risky Russell 3000 index, which clocks in at 15.8%.

Over the same period, Bitcoin has endured 27 separate 10% drops, 10 plunges of 30% or more, and five catastrophic 70% crashes. By contrast, the mainstream US stock market has only seen six 10% drops and a single 30% drawdown.

Investing in bitcoin with this type of volatility is not a store of value. Investing in Bitcoin is speculation. The wild swings may excite thrill-seekers, but anyone seeking stability is likely to be disappointed.

Gold as a Safe Haven

What about gold, the classic safe-haven asset? Gold has enjoyed some positive years, up 60% of the time since 1970, but it’s hardly a guarantee. That means in roughly four out of every ten years, gold investors have faced losses.

Meanwhile, the S&P 500, ironically, the very market from which gold investors typically flee, has delivered positive returns 80% of those years.

Plus, the marketing of gold is driven by high-commission sales tactics, not genuine concern for investor safety. Beware of those “buy gold now” ads; they exist to line the pockets of sellers, not to deliver real security to buyers.

The Science of Investment Security

Rather than relying on speculative assets, I prefer a scientific, data-driven approach to investing. At Fortress Planning Group, this means diversified exposure to thousands of companies striving to increase their value through hard work and innovation.

My framework focuses on dimensions of higher expected return, not chasing the latest shiny object or giving in to fear-based pitches. I prefer to adjust risk through a prudent mix of stocks and bonds, finding a portfolio that matches your personal risk tolerance and the required rate of return.

The bedrock of real security lies in controlling what you can: expenses, taxes, and risk.

Choose Stewardship Over Speculation

True security comes not from betting on volatile assets but from a disciplined, evidence-based investment plan, and from investing in your family and daily life. As you consider your own safe havens and stores of value, follow the data, seek out trustworthy advice, and build systems that support both your financial and personal well-being.

Resources Mentioned

Connect With Scott Wellens

Podcast Disclaimer:

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the US Securities and Exchange Commission in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

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About the author, Scott Wellens

Scott Wellens, CFP® is an investment advisor and founder of Fortress Planning Group. After earning his Bachelor of Science degree from the University of Wisconsin-Oshkosh, Scott quickly ascended to become a Vice President of North American Sales at a major regional provider of telecommunications infrastructure. While financially successful in this role, Scott searched for ways to pursue his passion related to financial literacy and providing financial freedom for both his own family and others. During his search, Scott became curious about the significant gap he found in the financial services sector: he was unable to find a comprehensive financial planner that maintained a family stewardship lens without being attached to financial products. Scott decided to fill that gap by creating his own planning firm that maintains a strong passion for comprehensive, unbiased wealth planning that is genuinely client-centered.

Scott resides in Menomonee Falls, WI with his family. He is the father of three active and independent daughters who keep him on his toes. Scott is an active community member, serving on the Hamilton Education Foundation Board, serves as a Dave Ramsey Financial Peace facilitator and leads the All Pro Dad’s group at their local elementary school. Scott enjoys spending his free time visiting state parks with his family, reading, and watching the Milwaukee Bucks and the Green Bay Packers win ball games.

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