Oaktree’s Howard Marks sees minimal difference between Bitcoin and gold

Howard Marks, co-founder of Oaktree Capital Management, questions the intrinsic value of Bitcoin and gold, favoring high-yield bond funds as a more secure investment option.

In a recent episode of the Merryn Talks Money podcast, Howard Marks, co-founder of Oaktree Capital Management, expressed his views on Bitcoin and gold, suggesting a lack of intrinsic value.

Marks, whose firm specializes in distressed debt and manages about $180 billion, highlighted gold’s historical reliability but questioned its fundamental justification.

Discussing the current investment climate, Marks noted a significant shift, indicating that the era of 0% interest rates is likely over, advising investors to explore alternatives like high-yield bond funds.

According to Marks, these funds offer considerable returns and are inherently safer due to the nature of fixed-income securities. This perspective suggests a cautious approach towards more speculative assets like Bitcoin (BTC) and gold, favoring more traditional investment strategies.

Bitcoin ETFs versus Gold ETFs

In 2024, Bitcoin and gold ETFs are quite different in their behavior in the market. Bitcoin ETFs are new and exciting, especially since the SEC recently approved them. However, prices can change significantly due to regulations or events in the Bitcoin world, such as the upcoming Bitcoin halving.

Conversely, Gold ETFs have been steadier. In 2023, the GLD ETF surged by nearly 13%, according to MarketWatch.com, meaning gold ETFs are becoming more stable and could continue to grow.

While Bitcoin ETFs are new and can be volatile from a price perspective, gold ETFs do not vary as much as their BTC counterparts. Both are important in their respective markets but differ regarding risk and how the ETFs react to market changes.