Gold Surges as Cryptocurrencies Decline in 2025

Gold prices have reached unprecedented levels in 2025, climbing from $2,600 at the year's start to $4,500 recently. Silver has also performed well, surpassing $71 per ounce, reflecting a 130% increase over the year.

In contrast, the cryptocurrency market has struggled, with Bitcoin's value falling by 6% since January and Ethereum decreasing by 12%. Smaller digital currencies have faced even steeper declines, plummeting by over 40%.

Yevgeny Sosen, head of market strategies at Gazprom Bank, noted that precious metals are increasingly viewed as a hedge against economic uncertainty rather than traditional investment vehicles. He attributed the recent price surge to a growing interest from investors and central banks in diversifying their reserves amid concerns over inflation and future monetary policies.

Sosen cautioned that precious metals could experience notable volatility in 2026, especially given the current price levels relative to production costs. He emphasized that the strong performance of gold and silver this year is more indicative of a shift in asset diversification strategies rather than substantial investment returns.

In conclusion, 2025 has seen gold and silver emerge as the more stable and profitable options compared to cryptocurrencies, which have faced significant downturns, particularly in smaller digital markets.