A comprehensive 55-year study of nine assets has identified three distinct roles for different savings needs. The US dollar emerges as the best choice for liquidity and near-term obligations, benefiting from its status as the world's main reserve currency and unmatched market depth. Gold serves as long-term insurance, protecting purchasing power through its limited supply and independence from government issuers. Bitcoin provides high-risk upside potential with its capped supply and digital properties, though its short history and extreme volatility limit its suitability for emergency funds.
Gold delivered the strongest 55-year result, with a notional $100 investment growing to $9,436, significantly above the $815 inflation target. According to the study, gold beat US inflation in 59% of rolling 10-year windows, though it failed in about four out of ten periods. The precious metal's advantage stems from its limited supply discipline and no central issuer that can create more supply at will. However, gold's worst 10-year period lost about 8.3% annually after inflation, requiring patience for recovery.
The US dollar maintained its position as the strongest choice for liquidity and near-term obligations, accounting for 56.9% of disclosed foreign-exchange reserves at the study's cutoff date. As reported by the study, the dollar's global network creates constant demand and gives dollar markets unmatched depth, making it easy to buy, sell, transfer, and spend in many countries. However, the dollar's global share has declined from 71% in 1999 to 56.9% in the current study, while dollar cash lost about 30% of its US purchasing power since 2013.
Bitcoin produced the largest return in the common 2013 test, with a notional $100 becoming $8,381 by July 2026, compared to $342 for gold and an inflation target of $144. According to the study, Bitcoin beat inflation in all four available 10-year windows, though this perfect result comes from a short and favorable sample period. However, Bitcoin fell about 82% from its 2013 peak to the 2015 low and 77% during the 2022 bear market, making it unsuitable for money that may be needed at short notice.
The study developed a seven-part scorecard evaluating each asset across supply discipline, market liquidity, trust, inflation protection, crisis behavior, portability, and price stability. The Swiss franc earned the highest raw score at 30 out of 35, followed by gold at 28 points. The US dollar and Singapore dollar scored 27 points each, while the British pound and Japanese yen recorded 0% in some categories. This framework combines market data with editorial judgement to provide a comprehensive comparison of different risks rather than price forecasts.
