Gold Outperforms Cryptocurrencies in 2025: Record Performance Amid Bitcoin and Ethereum Decline

Precious metal prices have recorded record highs this year, with the price of gold jumping from $2,600 at the beginning of 2025 to $4,500 recently, while the value of silver exceeded $71 per ounce, marking a 130% increase over the year.

In contrast, cryptocurrencies have shown weak performance, with the price of Bitcoin declining by 6% since the beginning of the year, and Ethereum dropping by 12%, while smaller or "alternative" digital currencies have collapsed by more than 40%.

Yevgeny Sosen, head of market strategies at Gazprom Bank, commented that precious metals are considered more of a hedge tool than an investment tool, noting that the current rise in prices is primarily due to investors and central banks seeking to diversify reserves amid uncertainty regarding inflation and future monetary policies.

Sosen confirmed that precious metals may face significant volatility in 2026, especially given the current price levels compared to production costs, explaining that the strong performance of gold and silver this year reflects more of a desire for investors to diversify assets rather than true investment returns.

In summary, in 2025, gold and silver were the safest and most profitable options compared to cryptocurrencies, which suffered sharp declines, especially in smaller digital markets.