At the end of 2025, the precious metals market is witnessing an exceptional record performance, with gold and **silver** continuing to achieve new record levels, while Bitcoin remains in a sideways consolidation phase (chopping) with limited volatility and a clear inability to make a strong upward breakthrough. This divergence reflects a shift in capital flows towards traditional safe assets, driven by economic and geopolitical factors.
### Gold Performance: Ongoing Historic Breakout
The price of gold reached new record levels above $4,500 per ounce on December 24, 2025, with strong daily gains and high closes. Gold rose by more than 70-73% during the year, supported by:
- Strong demand from central banks.
- Positive inflows into exchange-traded funds (ETFs).
- Expectations for further interest rate cuts from the Federal Reserve.
- Weakening US dollar.
- Escalating geopolitical tensions (such as the US and Venezuela, and Ukraine).
### Silver Performance: Relative Outperformance and Strong Breakout
Silver has performed relatively better, rising by more than 140% during 2025, reaching near record levels of $71-72 per ounce on December 24. Its outperformance is attributed to:
- Increasing industrial demand (solar energy, electric vehicles, data centers, electronics).
- Ongoing supply deficit for the fifth consecutive year.
- Its dual role as a safe haven and industrial metal.
### Comparison with Bitcoin: Consolidation and Volatility Phase
Bitcoin is currently trading around $88,000 - $89,000 on December 24, 2025, with a slight decline from its peak in October (around $126,000). It is suffering from:
- Prolonged correction and sideways volatility (chopping) without strong upward momentum.
- Decrease in short-term risk appetite.
- Outflows from stablecoins and significant lack of buying the dip.
### Why is capital flowing into precious metals?
- Traditional safe haven: in times of geopolitical and economic tension, investors prefer tangible assets with a long history of maintaining value.
- Industrial demand for silver: gives it an added advantage compared to Bitcoin, which primarily relies on investment demand and speculation.
- Gold/Silver ratio: decreased to around 63-65:1 (from previously higher levels), indicating a relatively low valuation for silver and potential for continued outperformance.
- Monetary policy: Expectations for additional rate cuts and a weakening dollar support precious metals more than digital assets at this stage.
### Key Points (December 24, 2025):
- Gold: above $4,500 per ounce, annual increase +70-73%.
- Silver: close to $71-72, annual increase +140%+, clear outperformance.
- Bitcoin: fluctuating around $88,000-$89,000, ongoing correction.
- Gold/Silver ratio: about 63-65:1, indicating relative strength of silver.
- The main reason for the flow: safe haven + industrial demand + economic factors currently supporting traditional metals more.
- Forecasts: Continued momentum in gold and silver is likely in 2026, with the possibility of Bitcoin recovering if risk appetite returns.
This shift highlights the importance of diversification into traditional safe assets during periods of uncertainty.
