As macroeconomic pressures mount, new investors are increasingly drawn to gold and silver rather than cryptocurrencies.
This shift highlights a growing preference for traditional, safe-haven assets, despite Bitcoin (BTC)’s position as “digital gold” and its long-term store of value narrative.
Young investors embrace gold as a hedge against inflation
Across global markets, investors are turning to precious metals as a hedge against inflation and economic fluctuations. Market participants point out that individuals with no trading experience are entering the gold and silver market rather than cryptocurrencies.
“People I know who have never traded anything are trading gold and silver. Retailers did show up and sell coins, but not in crypto. The alternative season we have been waiting for happened in precious metals,” said a crypto market watcher.
In the Middle East, record high prices are attracting young investors to the gold market, local media reported. According to Gulf News, Chirag Vora of Bafleh Jewelers said first-time buyers currently account for 55% to 60% of gold demand. This group, primarily made up of Gen Z and Millennials, is increasingly looking to gold as a hedge against inflation.
Rising prices have also brought about changes in purchasing behavior. Jewelry sales volumes declined, but overall spending increased due to higher prices. Retail buyers valued investment value and preferred lower ticket sizes and flexible options. Interest shifted from traditional jewelry to gold bars, coins, and lighter items that were easier to resell.
A similar pattern is evident in India. Demand for gold remains fragmented, with jewelery volumes declining while investment demand remains strong.
“Demand for gold investment products, particularly bars and coins, remains strong. Preference for investment-focused purchases is reflected in gold imports, which jumped to 340 tonnes in July-October compared to 204 tonnes in January-June, confirming the resilience of investment-led demand,” said Kavita Chacko, head of India research at the World Gold Council.
This demand is not new. In October, BeInCrypto reported that retail buyers were lining up at outside bullion dealers to obtain physical gold and silver.
A notable observation is the increasing presence of young investors among these buyers. This supports evidence of a generational shift towards traditional safe-haven assets.
This change is also reflected in online search behavior. Google Trends data shows that search interest for terms like “buy gold” has consistently exceeded “buy bitcoin” over the past year, indicating greater retail curiosity and intent in precious metals compared to cryptocurrencies.
Despite this new interest, gold remains a relatively small proportion of US household portfolios. Kip Hereage, managing partner and founder of Vertical Research Advisory, said gold now accounts for about 1% of total assets held by retail investors in the U.S., suggesting there is room for further allocation if this trend continues.
“For retail investor households in the US, gold makes up about 1% of the total portfolio (silver is less). This rally is just beginning as true price discovery is currently underway, with gold PT at $15,000 per ounce. When we first recommended gold and silver ($350/oz and $5/oz) in 2003, we also recommended that investors “save” in gold rather than in a fiat savings account. we are still continuing. I highly recommend this strategy now,” Herridge said.
Not only retail investors but also central banks are increasing their exposure to gold. Global gold reserves exceeded 40,000 tonnes in the third quarter of 2025, the highest level in at least 75 years.
The central bank purchased a net 53 tonnes in October alone, an increase of 36% from the previous month and the highest monthly net demand since the start of the year.
From crypto to bullion: why new investors choose gold
This demand fueled the rise in gold. The yellow metal hit a new all-time high of $4,497 an ounce today.
Meanwhile, Bitcoin has fallen nearly 2% in the past 24 hours. BeInCrypto recently highlighted that while BTC has lagged behind gold on a year-to-date basis, silver has surged 138% and emerged as the best-performing asset.
NoOnes CEO Ray Youssef told BeInCrypto that while gold may be the clear winner in the 2025 down trade in terms of price performance, this comparison masks a more nuanced market reality.
Gold’s recent all-time high and year-to-date gain of 67% reflects classic defensive investor positioning, with capital seeking certainty in a market environment defined by fiscal excesses, geopolitical tensions, and macro policy uncertainty. Increasing central bank accumulation, a weakening dollar, and persistent inflation risks are reinforcing gold’s role as the market’s preferred defense asset.
“Bitcoin, in contrast, has not fulfilled its hedging narrative recently as its market behavior has evolved. Due to its increased sensitivity to macroeconomic factors, this asset is not trading like digital gold in 2025. Bitcoin’s upside potential is now not solely due to currency depreciation, but is tied to increased liquidity, sovereign policy clarity, and risk sentiment,” he commented.
The virtual currency market is still at the “wall of distrust” stage
Although retail interest is waning, some analysts believe cryptocurrencies still have the potential for growth. One analyst highlighted that previous cycles have seen a surge in retail activity as the market peaks. In contrast, retail interest did not rise as much this time and cooled quickly after the rally.
In our Crypto Talk, we highlighted that the price strength in December 2024 came without a retail surge. Instead, institutions, funds, and structured purchases drove the action.
“Typically, markets end when retailers are fully engaged, loud, confident and overexposed. We are not there. At the moment, the market still appears to be climbing a wall of distrust. Prices are rising without widespread participation, and sentiment remains cautious even after a strong move. “This does not guarantee price increases tomorrow, but it strongly suggests that this cycle has not yet reached the psychological stage where overshoot is punishable. And historically, the biggest moves occur after retail has occurred,” the analyst commented.
It is unclear whether retail capital will move away from gold and silver and back into digital assets. For now, precious metals continue to attract interest and capital. As 2026 approaches, the question is whether this preference will continue or change.
The article Gold, not Bitcoin, will capture a new generation of investors in 2025 appeared first on BeInCrypto.
