Gold (GC=F) and silver (SI=F) investors are taking a victory lap this year as crypto bulls are left in the dust.
On Friday, gold futures rose above $4,550 to remain at or near record highs, capping a year marked by more than 50 such records.
Meanwhile, silver also surged past $75 an ounce, extending year-to-date gains to 150% in a parabolic rally driven by concerns about physical shortages during a time of strong industrial demand. Platinum (PL=F) and copper (HG=F) also rose to records this year.
Some investors are quick to point out the divergence between the metals and cryptocurrency industry, which has been driven by a strong lower leg from bitcoin (BTC-USD) in recent weeks. Ether (ETH-USD) is also down 12% year to date.
“With gold now up to almost 70% in 2025 and most cryptocurrencies negative, it’s time for the crypto crowd to switch to gold,” noted Louis Navellier, founder of Navellier & Associates, earlier this week.
Navellier points to central bank purchases, lower volatility, and improved liquidity in the gold market compared to cryptocurrencies.
Meanwhile, gold bull Peter Schiff, a notorious crypto critic, stated on X, “If Bitcoin won’t go up when tech stocks go up, and it won’t go up when gold and silver go up, when will it go up? The answer is: it won’t go up.”
The metal’s climb to all-time highs comes as crypto is on track to end the year in negative territory, with bitcoin trying to avoid a third consecutive month of losses.
The world’s largest cryptocurrency has pulled out of stocks for the first time since 2014, despite a favorable regulatory environment and increased adoption of crypto on Wall Street.
The token struggled to recover after long-holders sold, and forced liquidations sent prices sliding roughly 30% from a record high near $126,000 in October to just over $87,000 on Friday.
Fundstrat’s head of digital assets, Sean Farrell said he is not surprised that bitcoin has been trading in a tight range recently.
“Santa rallies are usually characterized by people selling losers, buying winners at the end of the year,” Farrell said in a customer video earlier this week.
“I just think a lot of people aren’t coming in here to put a lot of risk into an asset that has underperformed for the better part of the last few months,” he added.
The strategist said he believes there is a compelling setup for a bounce in January, as inflows are expected to increase from investors adopting bitcoin for their long-term portfolios.
“Assuming December closes red … history suggests January will be green,” Farrell said.