Gold, Not Bitcoin: A New Trend Among Young Investors in 2025

As macroeconomic pressures rise, a new generation of investors is showing a strong preference for gold and silver over cryptocurrencies, highlighting a renewed interest in traditional safe-haven assets.

Key Takeaways

Many young investors are shifting towards gold and silver as a hedge against inflation amid economic uncertainty.
In regions like the Middle East and India, first-time buyers represent a significant portion of gold demand, particularly among Millennials and Gen Z.
Although Bitcoin is often referred to as "digital gold," its performance has lagged behind that of gold and silver recently.
Central banks are increasing their gold reserves, reflecting a broader acceptance of its value in today’s economic climate.
Retail interest in cryptocurrency remains low as precious metals draw significant attention.

Younger Investors Favor Gold Over Cryptocurrencies

In the face of rising inflation and economic unpredictability, many investors are steering towards precious metals like gold and silver rather than cryptocurrencies. Market analysts have observed that individuals without prior trading experience are now more inclined to explore gold and silver markets instead of diving into the crypto realm. A crypto market analyst noted, “People I know who have never engaged in trading are now actively trading gold and silver. The retail surge did happen; it just didn't manifest in crypto. The anticipated alt season occurred in precious metals.”

In the Middle East, reports indicate that skyrocketing gold prices are drawing in younger buyers. Chirag Vora from Bafleh Jewellers shared with Gulf News that first-time buyers now make up 55% to 60% of gold demand. This demographic primarily includes Millennials and Gen Z, who are increasingly viewing gold as a safeguard against inflation.

The rising prices have also changed purchasing patterns. While jewelry sales volumes have decreased, total spending has increased due to higher costs. Retail buyers are now focusing on investment value, favoring smaller purchases and more flexible options. Interest has shifted from traditional jewelry to gold bars, coins, and lightweight items that are easier to resell.

A similar trend can be seen in India, where the demand for gold is split between strong investment interest and weaker jewelry sales. Kavita Chacko, Research Head for India at the World Gold Council, stated, “The demand for gold investment products, especially bars and coins, remains robust. The rising preference for investment-driven purchases is evident in the significant increase in gold imports, which jumped to 340 tons between July and October, compared to 204 tons from January to June, highlighting the strength of investment-led demand."

Retail buyers began flocking to bullion dealers to purchase physical gold and silver as noted in an October report from BeInCrypto. A key observation was the increase of younger investors among these shoppers, further confirming a generational trend towards traditional safe-haven assets.

This trend is also evident in online search behaviors. Google Trends data indicates that interest in searching for terms like “buy gold” has consistently exceeded those for “buy Bitcoin” over the past year, suggesting a growing retail interest in precious metals compared to cryptocurrencies.

Nevertheless, gold still accounts for a relatively modest segment of household portfolios in the U.S. As noted by Kip Herriage, managing partner and founder of Vertical Research Advisory, gold constitutes about 1% of total assets held by U.S. retail investors, indicating potential for further investment if the trend persists. Herriage remarked, “In U.S. households, gold represents approximately 1% of their total portfolio (with silver even lower). We believe this upward movement is just starting, with a projected price target of $15,000 per ounce for gold and $200 per ounce for silver as true price discovery begins.”

Additionally, central banks are bolstering their gold holdings. Global gold reserves surpassed 40,000 tonnes in the third quarter of 2025, marking the highest levels seen in over 75 years. Central banks added a net 53 tonnes of gold in October alone, reflecting a 36% month-over-month increase and the largest monthly net demand recorded for the year.

Why Gold Is Outshining Bitcoin

Greater demand is fueling the ongoing gold rally, pushing its price to an all-time high of $4,497 per ounce. In contrast, Bitcoin has dropped nearly 2% in the last 24 hours. BeInCrypto recently highlighted how BTC has underperformed compared to gold this year, with silver outpacing both assets, increasing by an impressive 138%.

Ray Youssef, CEO of NoOnes, explained that while gold is clearly excelling in the current market, the comparisons may overlook a more complex situation. He noted, “Gold’s peak and a 67% year-to-date rise showcase its role as a defensive asset as investors seek certainty in a market marked by fiscal excess, geopolitical tensions, and macroeconomic uncertainty. The growth in central bank reserves, a weaker dollar, and persistent inflation risks have solidified gold's standing as the market’s preferred safe asset.”

He further added that Bitcoin has recently struggled to fulfill its role as a hedge, as its market behavior has changed significantly. BTC's value is now more closely linked to liquidity levels, government policies, and overall investor sentiment than to the concept of monetary debasement alone.

The Current State of Crypto Markets

Although retail interest in cryptocurrencies appears to have dwindled, some analysts remain optimistic about the potential for future growth. One analyst pointed out that in previous market cycles, retail activity typically surged near market peaks. However, this time around, retail interest has remained subdued and quickly tapered after brief rallies.

An evaluation by Our Crypto Talk suggested that the price increases seen in December 2024 happened without significant retail engagement. Instead, institutional and structured buying spurred these movements. “Market peaks generally occur when retail investors are fully engaged and confident. Currently, we haven't reached that point. The market resembles one that is climbing a ‘wall of disbelief’—price increases occurring without broad retail participation and continued cautious sentiment even following strong price movements. While this does not guarantee future price hikes, it suggests this cycle has not yet entered the phase where excess gets punished. Historically, the most significant market movements typically happen once retail fully enters the fray, which has not occurred yet,” the analyst mentioned.

It remains uncertain whether retail capital will shift from gold and silver back into digital assets. For now, precious metals are attracting significant interest and funds. As we approach 2026, the pivotal question remains: will this inclination continue, or will it shift again?