Precious Metals Outshine Bitcoin in 2025: Gold, Silver, Platinum, and Palladium Surge
In 2025, Gold (XAU) has demonstrated exceptional performance, surpassing even Bitcoin (BTC). However, the success isn't limited to gold; other precious metals, including silver, platinum, and palladium, have also significantly outperformed the leading cryptocurrency.
Precious Metal Price Surge
According to TradingView data, gold's price has soared by 44% to reach a record $3,784. Similarly, silver has seen a 53% increase, reaching $44.32 per troy ounce. Platinum has experienced an even more substantial gain of 60%, climbing to $1,452, while palladium has risen by 33% to $1,207.
Bitcoin's Underperformance
Bitcoin, often described as "digital gold," has lagged behind these precious metals, increasing by just over 20% to $113,000. This marks a notable difference in year-to-date performance.
Safe Haven Status and Inflation Hedge
The superior performance of precious metals reinforces their status as preferred safe havens and inflation hedges. This is particularly relevant given the deteriorating fiscal outlook for advanced economies, increasing threats to the Federal Reserve's independence, and ongoing global trade tensions.
Central Bank Diversification into Gold
A major factor driving the demand for precious metals is the diversification efforts of central banks. These institutions collectively hold around 36,000 metric tons of gold, according to a study by the European Central Bank. The central banks buying spree accelerated after the coronavirus crisis and Russia's 2022 invasion of Ukraine, events that injected inflationary pressures into the global economy.
Record Pace of Central Bank Gold Acquisition
Over the past three years, central banks have added more than 1,000 metric tons of gold annually. This record pace is more than twice the average of the previous decade, signaling a strong shift towards gold as a reserve asset.
Bitcoin's Limitations
Bitcoin has not yet been widely adopted by central banks for their balance sheets, restricting its role as a primary reserve asset. Furthermore, the cryptocurrency's gains have been potentially limited by consistent liquidations and distributions from older wallets above $110,000, offsetting ETF inflows.
Read more: Here Are the 3 Make-Or-Break Bitcoin Price Floors as BTC Sell-off Gathers Steam
