Gold and Bitcoin Surpass Scarcity Assets Amid Rising Fiscal and Monetary Risks
Investors are flocking to two scarcity assets - Gold and Bitcoin - as they seek protection from monetary and fiscal risks. According to recent data, both assets have gained appeal in response to growing concerns about inflation, fiscal deficits, dollar value, and monetary policy.
The World Gold Council estimates that around 220,700 tonnes of gold have been mined across history, with almost all of it still existing. New mine output adds only a small amount each year, totaling approximately 3,672 tonnes in 2025. Central banks bought 288.9 tonnes of gold in the second quarter of 2026, up 62% from the same period last year.
Gold funds returned to positive territory in July after two months of outflows, with global gold ETFs taking in USD 3 billion that month. Assets under management rose to USD 530 billion, while collective holdings increased by 23 tonnes to 4,068 tonnes. Year-to-date ETF inflows reached USD 11 billion, equal to a 39-tonne rise in holdings.
Bitcoin, on the other hand, has a fixed supply limit of 21 million coins, with about 20 million already mined. This means that new supply is capped at less than 1 million coins. The current block reward stands at 3.125 BTC, with annual new supply near 164,000 BTC, putting Bitcoin's monetary inflation rate at around 0.8%.
While both assets share a common appeal as scarcity assets, their risk profiles differ significantly. Gold has a long record as a reserve asset and carries far lower price volatility compared to Bitcoin, which has a much shorter market history and can move sharply within days.