Gold and Silver Are Crushing Bitcoin – Should You Switch?

[Ben Graham]

Gold and silver fans celebrate a monster year in 2025 while many Bitcoin holders feel stuck on the sidelines. Gold price gained more than +70% and silver price exploded over +180%, even after a sharp pullback from record highs. At the same time, Bitcoin faced liquidity stress and ETF outflows as investors hunted for safety.

Silver briefly broke above $83 per ounce before dropping back, a move that followed months of supply worries and strong industrial demand. Gold marched higher all year as central banks and ETF buyers kept adding, with some estimates putting 2025 gains above 70%. Meanwhile, Bitcoin ETFs saw more than $1.3 billion flow out in late 2025 as risk-off investors shifted toward what they see as safer havens.

(Source – CoinGlass, Total Bitcoin ETF Netflow)

This split in performance rattles many crypto beginners. You hear that Bitcoin is “digital gold,” but then the old-school metals dominate the scoreboard for the year. So the real question is not “which tribe is right?” but “how do you protect and grow your savings without betting everything on one asset?”

What Does the 2025 Gold and Silver Rally Mean for Retail Investors?

First, quick definitions. A safe-haven asset is something investors run to when they worry about inflation, war, or a financial crisis. Think of it like a fireproof safe for your wealth. Gold has played that role for centuries. Silver sometimes joins the party, although it behaves more like a mix of precious metal and industrial metal.

In 2025, that “fireproof safe” trade worked. Central banks continued to accumulate gold, and ETFs such as GLD and IAU experienced strong inflows. Silver ETFs such as SLV rode the same wave, helped by demand from solar, electronics, and green tech factories. This is why your social feeds feel full of gold and silver fans teasing Bitcoin holders.

On the crypto side, big money backed off. Bitcoin ETFs, such as BlackRock’s IBIT, which earlier surpassed $60 billion in assets, experienced significant outflows as investors triggered the “risk off” button. We have already witnessed similar behavior when crypto funds lost nearly $1 billion in a week during earlier drawdowns, as we covered in our most recent coverage of crypto capital movements.

So what does this mean for you as a beginner? Gold and silver winning this year does not mean Bitcoin failed. It means markets treated metals as the short-term safety trade while they treated Bitcoin as a long-term growth bet that swings harder when liquidity dries up.

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How Should You Think About Bitcoin, Gold, and Silver in One Portfolio?

Think of your money in “buckets.” One bucket protects purchasing power. Another aims for long-term growth. Gold (and sometimes silver) usually sits in the protection bucket. Bitcoin often sits in the growth bucket, similar to a high-volatility tech stock with a fixed supply cap.

Over the very long term, Bitcoin still dominates the scorecard. Since 2011, Bitcoin delivered hundreds of thousands of percent in total return and beat gold by a huge margin, as shown by CoinDesk data. But that same explosive upside is the reason you sometimes see brutal shakeouts and forced liquidations, like the $154 billion wipeout we explained in our recent piece on crypto liquidations.

So instead of asking “should I sell all my BTC for gold?” a better question is “how much of my total net worth sits in high-volatility assets versus safety assets?” For many beginners, a safer starting point could be as simple as: keep most wealth in cash, short-term bonds, or broad stock funds, add a small slice of gold or silver as an inflation hedge, and then use a modest piece for Bitcoin exposure via spot BTC or a regulated ETF (but that isn’t investment advice, do your own research!).

You also want to pay attention to interest rate cycles. When markets expect rate cuts, cheap money often flows back into risk assets. Analysts already debate whether 2026 brings a new crypto cycle or a longer risk-off phase, as we discussed in our analysis of stablecoins and rate cuts in 2026. If central banks ease, Bitcoin may catch up or even overtake metals again, but the ride will not feel smooth.

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What Are the Risks If You Chase Gold or Abandon Bitcoin Now?

Short answer: Chasing whichever asset just pumped usually backfires. Silver already showed how fast things can reverse when it dropped right after breaking $80. If you buy only because charts go parabolic, you accept high risk of a nasty pullback that hits your savings at the worst time.

On the flip side, panic-selling Bitcoin after a weak year ignores its long track record of recovery after deep drawdowns. According to several long-term studies, investors who dollar-cost averaged into BTC and ignored short-term noise did far better than traders who tried to jump between narratives. The danger lies in over-allocating. If you invest 80–90% of your wealth in a single asset, such as gold or Bitcoin, you risk carrying undue stress and emotional decision-making.

Diversification will not give you bragging-rights screenshots tomorrow, but it gives you a much better chance to stay in the game long enough for the long-term stories to play out.

As 2025 closes with metals on top and Bitcoin under pressure, possibly the smartest move for beginners is not to pick a side in the metal-vs-crypto fight. Build a simple, boring allocation that respects both, and let time, not Twitter debates, do the heavy lifting.

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