Gold and Bitcoin Gain Favor Amid Scarcity Craze

Investors are increasingly turning to assets that offer scarcity and protection against inflation, fiscal deficits, currency weakness, and monetary uncertainty. Both gold and Bitcoin have gained appeal as a result.

Gold has a limited new supply combined with strong central bank demand and renewed ETF inflows. It trades near USD 4,580 per ounce, with prices gaining more than 8% in 2026 and over 14% in August.

Bitcoin also offers scarcity, with a fixed maximum supply of 21 million coins and about 20 million already mined, leaving less than 1 million to come. The current block reward stands at 3.125 BTC, resulting in an annual new supply near 164,000 BTC and a monetary inflation rate of approximately 0.8%.

Central banks continue to buy gold, with Q2 2026 purchases reaching 288.9 tonnes, up 62% from the same quarter last year. Gold funds also saw a rebound in July, with USD 3 billion in inflows and assets under management rising to USD 530 billion.