Gold Surpasses Cryptocurrencies in 2025: Record Performance Amid Bitcoin and Ethereum Declines

Precious metals have seen record price increases this year, with gold rising from $2,600 per ounce at the beginning of 2025 to $4,500 recently. Silver has also surged, exceeding $71 per ounce, marking a 130% increase over the year.

In contrast, cryptocurrencies have underperformed, with Bitcoin's price declining by 6% since the start of the year and Ethereum dropping by 12%. Smaller or alternative cryptocurrencies have faced even steeper declines, collapsing by over 40%.

Evgeny Sussin, head of Market Strategies at Gazprom Bank, noted that precious metals are viewed more as a hedge than a traditional investment. He attributed the current price surge to investors and central banks seeking to diversify their reserves amid uncertainty regarding inflation and future monetary policies.

Sussin also indicated that precious metals may experience significant price fluctuations in 2026, particularly given the current price levels relative to production costs. He explained that the strong performance of gold and silver this year reflects investors' desire for asset diversification rather than actual investment returns.

In summary, gold and silver emerged as the safer and more profitable options in 2025, contrasting sharply with the steep declines experienced by cryptocurrencies, especially within smaller digital markets.