Gold, Silver, or Bitcoin: Finding the Perfect Fit for Your Investment Strategy

The closing act of 2024 is full of uncertainty, volatility, and outright fear as economies falter and geopolitical tensions rise. Investors are eagerly searching for safe havens to protect against potential market blunders, but many aren’t sure which asset to hold.

In this week’s The Gold Spot, Precious Metals Advisors Joe Elkjer and Richard Otto discuss the merit of physical gold vs silver heading into 2025 and if Bitcoin deserves a spot in your portfolio.

Should you buy gold or silver?

After a sustained precious metals rally throughout 2024, investors wonder if they should buy gold or silver heading into 2025. In reality, as with all assets, the “best” choice depends on each person’s specific circumstances and investment goals.

“There’s not a one-size-fits-all when it comes to precious metals. We need to dig into what your needs are and what you’re trying to accomplish to find what’s right for you.”

Joe Elkjer

Precious Metals Advisor

Both gold and silver boast thousands of years as investments, positioning both as stable stores of value and preservers of wealth. Their performances in 2024 and price predictions for 2025 only reinforce this notion.

Related Video: Why Investing in Gold & Silver is NOT a Cookie-Cutter Approach

Gold

Gold entered this year at a respectable $2,063/oz before being catapulted to new heights. The yellow metal has gained over 30% in the past year after a strong recovery from a post-election dip.

This powerhouse rally forced experts to raise their gold price predictions multiple times throughout 2024, as gold easily crossed price hurdles. At the same time, central banks have aggressively increased their reserves, notching a fresh record in Q3 of 2024, following consecutive years of exceptionally high demand.

Silver

Silver didn’t make as many headlines as gold, but it yielded a similar return for investors. At the beginning of the year, the shiny metal clocked in at just under $24/oz before surging to nearly $35/oz. That’s more than a 45% climb!

Although some central banks (Russia, most notably) are topping off their gold reserves with silver, silver prices have been mainly driven by a supply-and-demand imbalance. While the silver supply has remained stagnant for the better part of 14 years, industrial demand is picking up speed, which is a bullish setup for silver prices.

Historically, silver’s price action lags behind gold’s moves by roughly 12 to 15 months. The yellow metal’s massive rally launched about that long ago, meaning 2025 could be a huge opportunity for silver to move further to the upside.

What about Bitcoin? Bitcoin vs Gold vs Silver

After a years-long dip, Bitcoin has surged to new highs, breaking through the $100,000 barrier earlier this month. Spurred by Trump’s victory, cryptocurrencies are experiencing renewed interest from retail and institutional investors. This buzz and impressive evaluations make many people wonder if they should choose these digital currencies over gold and silver.

You really can’t compare gold and silver to Bitcoin.

– Precious Metals Advisor Joe Elkjer

The truth is these assets aren’t in the same ballpark. While Bitcoin’s volatility and speculation can lead to significant gains (and losses), gold and silver have always been about sustainability, stability, protection, and long-term growth.

There’s a reason central banks own physical gold bullion instead of cryptocurrency: It’s not inherently valuable. Federal Reserve Chair Jerome Powell was recently asked if he owns Bitcoin, and he said he wasn’t allowed to, highlighting the risk of government control.

Ray Dalio, the founder of Bridgewater Associates, summed it up well, describing Bitcoin as a “speculative vehicle” that “doesn’t work” as a reserve asset. Similar to central banks, the billionaire said he prefers gold.

Don’t Wait to Buy Gold, Buy Gold and Wait

Even though an ounce of gold remains less valuable than a single Bitcoin, the focus is on proof of performance rather than raw numbers. For millennia, gold and silver have been used as stores of value and mediums of exchange, compared to the recent and volatile birth of cryptocurrency.

“If you’re looking to preserve and protect, nothing beats having physical gold and silver in your hand.”

Joe Elkjer

Precious Metals Advisor

Interested in learning more about diversifying with precious metals? Get your FREE COPY of our Precious Metals Investment Guide today! It covers everything you should know about investing in gold and silver for optimal protection, growth, and security.