Gold ETF media coverage from 2014 to 2018 was as brutal as bitcoin, analyst says
Senior ETF analyst Eric Balchunas said gold went on to gain 250 percent over the next seven years despite years of harsh press sentiment.
Key takeaways
- 1Eric Balchunas compared current negative bitcoin coverage to gold ETF reporting between 2014 and 2018.
- 2Gold prices increased 250 percent over the seven years following that period of negative press coverage.
Media coverage of gold exchange-traded funds between 2014 and 2018 was as negative as recent press reporting on bitcoin, senior ETF analyst Eric Balchunas said. Balchunas described public commentary on gold funds during those four years as "absolutely brutal", saying press coverage of gold at the time was as bad or worse than recent media reports on bitcoin.
Gold subsequently went on to rise 250 percent over the next seven years following that four-year period of harsh press coverage. Balchunas said the asset's multi-year price rally shows that prolonged periods of negative media reporting do not prevent an investment vehicle from achieving substantial long-term gains.
Exchange-traded funds allow retail and institutional investors to gain direct exposure to an asset, such as physical gold or bitcoin, through traditional brokerage accounts without managing direct custody. Gold funds introduced this model two decades ago, establishing a structure that financial regulators later approved for spot bitcoin vehicles in major markets.
The historic pattern suggests that sustained media skepticism during market cycles does not automatically lead to permanent price stagnation or investor abandonment. Traders will watch whether long-term inflows into spot bitcoin vehicles follow the pattern established by gold funds after their four-year period of negative press sentiment.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.