Gold No Longer a Store of Value, McGlone Warns
Bloomberg's Mike McGlone says gold is no longer a store of value as 2026 volatility dwarfs the S&P 500 and Bitcoin signals a coming market downturn.
What to Know
- Bloomberg Intelligence strategist Mike McGlone says gold has lost its safe-haven status due to extreme volatility
- Gold's 180-day volatility is nearly 2.5 times that of the S&P 500, according to McGlone
- The Bloomberg Galaxy Crypto Index is sharply down from its peak — McGlone says crypto may be leading traditional markets lower
- McGlone sees echoes of the 2008 financial crisis in today's oil-driven macro environment
Gold is no longer a store of value. That's the blunt call from Bloomberg Intelligence strategist Mike McGlone, who this week tied the current oil shock and surging commodity volatility to a macro setup that looks uncomfortably close to the run-up to the 2008 financial crisis.
Why McGlone Says Gold Has Lost Its Safe-Haven Status
Is gold still a store of value in 2026?
Gold's boring-hedge reputation is done. McGlone says gold store of value arguments have collapsed under a simple number: 180-day gold volatility is running nearly 2.5 times that of the S&P 500. That's not a safe haven. That's a risk asset in disguise.
Equity volatility has stayed contained even as commodities have swung hard — a divergence McGlone calls unsustainable. Historically, that gap closes through an equity volatility spike inside a broader correction. If he's right, the calm in stocks is on borrowed time.
Right now, 180-day volatility on gold is almost 2.5 times that of the S&P 500. So it's no longer a store of value.
Is Crypto Already Pricing in a 2008-Style Crash?
The uncomfortable read for digital asset holders: McGlone thinks crypto is the canary. The Bloomberg Galaxy Crypto Index is already well off its peak, and he sees that as a leading indicator — crypto rolling over before equities follow. The oil shock is his frame of reference. Energy prices spiked before crashing in 2008, kicking off a global slowdown. Iran-related supply uncertainty is keeping oil elevated today, and whether that holds or breaks is the variable McGlone is watching closest.
What Does This Mean for Bitcoin and Investors?
US Treasuries are McGlone's lone safe corner. He argues they're one of the few assets that could benefit if volatility rises and growth decelerates — the classic flight-to-safety trade from 2008. For Bitcoin holders, the framing is less kind. If Mike McGlone is right that crypto leads broader risk assets lower, the equity market hasn't priced the pain yet.
Gold outvolatilizing the S&P 500 by 2.5x isn't normal. And normal is what markets have been assuming.
Frequently Asked Questions
Why does Mike McGlone say gold is no longer a store of value?
McGlone argues gold has lost its safe-haven status because its 180-day volatility is nearly 2.5 times that of the S&P 500. A store of value should be stable relative to equities — by that measure, gold is behaving like a risk asset, not a hedge, as of early 2026.
What is the Bloomberg Galaxy Crypto Index?
The Bloomberg Galaxy Crypto Index is a benchmark tracking the performance of the largest digital assets. McGlone cites the index's significant decline from its peak as evidence that crypto may be acting as a leading indicator for a potential broader downturn in traditional financial markets.
How does the current market resemble the 2008 financial crisis?
McGlone points to rising oil prices tied to Iran-related geopolitical conflict — similar to the energy spike before the 2008 crash — combined with low equity volatility he considers unsustainable. He expects this imbalance to resolve through sharply higher stock market volatility during a broader correction.
Which assets does McGlone favor if markets correct?
McGlone singles out US Treasuries as one of the few assets likely to benefit in a growth slowdown. If volatility rises and risk assets sell off, he expects a flight-to-safety rotation into Treasuries, echoing patterns seen during the 2008 financial crisis and other major macro dislocations.