Precious Metals Shine as Cryptocurrency Struggles in 2025

Record-Breaking Prices in Gold and Silver Markets

The year 2025 has been exceptional for precious metals investors, with gold and silver reaching unprecedented price levels. Gold futures have surged past US$4,550 per ounce, marking a significant milestone in the commodity's history. This performance represents a continuation of the metal's strong year, having created over 50 new price records throughout 2025.

Silver has been equally impressive, with prices climbing above US$75 per ounce and achieving a year-to-date gain of approximately 150%. The surge in silver prices has been driven by concerns over physical supply shortages coupled with robust industrial demand. Other precious metals like platinum and copper have also reached record highs, contributing to the overall positive sentiment in the commodities market.

Divergent Performance: Precious Metals vs. Cryptocurrency

The remarkable performance of precious metals stands in stark contrast to the struggles faced by major cryptocurrencies. Bitcoin has declined by around 6% year-to-date, while Ethereum has fared even worse with a 12% drop. This divergence has caught the attention of investors and market analysts, with some suggesting that the traditional safe-haven assets are gaining preference over digital currencies.

Prominent investors like Louis Navellier have been vocal about the shift, stating that with gold having risen nearly 70% in 2025, while most cryptocurrencies remain in negative territory, it might be time for crypto investors to consider reallocating to gold. Navellier highlights gold's advantages, including aggressive central bank buying, lower volatility compared to crypto, and improving market liquidity.

Peter Schiff, known for his critical stance on cryptocurrency, has been equally emphatic. He questions the viability of Bitcoin's price trajectory, pointing out that the cryptocurrency has failed to rise during periods when both tech stocks and precious metals have seen significant gains.

Market Dynamics and Future Outlook

The current market dynamics suggest that investors are increasingly favoring traditional safe-haven assets amid economic uncertainties. The divergence between precious metals and cryptocurrencies is likely to continue in the near term, driven by factors such as central bank buying, industrial demand for metals, and regulatory developments in the crypto space.

Looking ahead, experts are divided on the short-term prospects for Bitcoin. While some analysts, like Sean Farrell of Fundstrat, see potential for a rebound in January following historical patterns, others like Standard Chartered have revised their price targets downward, cutting their end-2025 target from US$200,000 to US$100,000 and their 2026 target from US$300,000 to US$150,000.

The contrasting fortunes of precious metals and cryptocurrencies in 2025 underscore the evolving landscape of investment preferences, with traditional assets currently holding a clear advantage in investor sentiment.