New investors are increasingly choosing gold and silver instead of cryptocurrencies, as macroeconomic pressure rises.
This shift shows that more and more people prefer traditional safe havens, despite Bitcoin (BTC) being known as 'digital gold' and seen as a stable long-term investment.
Younger investors are opting for gold as a hedge against inflation
Around the world, investors are turning to precious metals to hedge against inflation and economic uncertainty. Market observers note that people without prior trading experience are now entering the gold and silver market instead of crypto.
“People I know who have never traded anything are now trading gold and silver. Retail has arrived, and they have pushed certain coins, just not in crypto. The altcoin season we were waiting for has actually been in precious metals,” said a crypto market observer.
In the Middle East, local media report that record-high prices are attracting younger investors to the gold market. According to Gulf News, Chirag Vora of Bafleh Jewellers states that first-time buyers now account for 55% to 60% of the demand for gold. This group mainly consists of Gen Z and Millennials, who increasingly see gold as a hedge against inflation.
Rising prices have also changed buying behavior. Jewelry sales declined in volume, but total spending increased due to higher prices. Retail buyers are focusing more on investment value and are opting for smaller purchases and flexible options more often. Traditional jewelry is giving way to gold bars, coins, and lighter pieces that are easier to resell.
A similar picture can be seen in India. The demand for gold there is mixed: there is strong demand for investments, but the volumes of jewelry are less strong.
“Demand for gold investment products, especially bars and coins, remains strong. The preference for investing is also reflected in the import of gold, which surged from 204 tons in the first half of the year to 340 tons between July and October. This demonstrates the strength of investment-driven demand,” wrote Kavita Chacko, head of research India at the World Gold Council.
This question is not new. In October, BeInCrypto reported that retail buyers were lining up at gold dealers to buy physical gold and silver.
It was particularly noticeable that more and more young investors joined these buyers. This reinforces the image of a generational shift towards traditional safe havens.
The shift is also visible in online search behavior. Data from Google Trends shows that the term “buy gold” has been searched much more frequently than “buy Bitcoin” in the past year. This indicates greater public interest in precious metals than in cryptocurrencies.
Despite this recovery, gold remains just a small part of the average portfolio of American households. Kip Herriage, managing partner and founder of Vertical Research Advisory, says that gold accounts for about 1% of all assets that retail investors in the U.S. own. According to him, there is still room to add more gold if this trend continues.
“For American retail investors, gold accounts for about 1% of their total portfolio (and silver even less). We believe this increase is just beginning, with a price target for gold of $15,000 per ounce and silver $200 per ounce, as real price discovery begins. In 2003, when we first recommended gold & silver ($350/oz & $5/oz), we advised investors to save in gold instead of regular savings accounts. We still recommend that today,” said Herriage.
Not only retail investors, but also central banks have further expanded their gold holdings. Global gold reserves rose to more than 40,000 tons in the third quarter of 2025, the highest level in at least 75 years.
Central banks bought a net 53 tons in October alone, a month-on-month increase of 36% and the highest monthly net purchase this year so far.
From crypto to gold: why new investors are choosing gold
The strong demand has further fueled the gold rally. The precious metal reached a new all-time high of $4,497 per ounce today.
At the same time, Bitcoin has fallen nearly 2% in the past 24 hours. BeInCrypto recently indicated that BTC has performed worse than gold in 2024, while silver was even the best-performing asset with a 138% increase.
Ray Youssef, CEO of NoOnes, told BeInCrypto that gold is clearly performing better in 2025, but that the comparison oversimplifies the real situation in the market.
The recent rise in gold to new all-time highs and a gain of 67% year-to-date shows that investors are choosing classic defensive options, as they seek certainty in a market characterized by high government spending, geopolitical tensions, and unclear economic policy. Due to larger purchases by central banks, a weaker dollar, and ongoing inflation risks, gold is once again seen as the preferred defensive asset in the market.
“Bitcoin, on the other hand, has not acted as a hedge lately. The Bitcoin market has changed. In 2025, the asset has not behaved like digital gold, mainly due to its high sensitivity to macroeconomic factors. The rise in the BTC price now mainly depends on more liquidity, clearer policies from countries, and risk sentiment, not just on monetary depreciation,” his response stated.
Crypto market remains in “wall of disbelief” phase
Although the interest from retail investors has decreased, some analysts believe that crypto can still grow. One analyst emphasized that in previous cycles, retail activity peaked when the market was at a high. This time, retail interest remained low and disappeared quickly after price increases.
Our Crypto Talk pointed out that the strong price increases of December 2024 came without retail spikes. Instead, it was institutions, funds, and structured purchases that caused the movement.
“Markets usually end when retail investors are fully participating, loud, confident, and taking too much risk. That is not the case now. Now it seems more like a market that is still rising while many people do not believe in the rise. The price is rising without everyone participating, and sentiment remains cautious, even after large movements. This does not guarantee higher prices tomorrow. But it does strongly indicate that this cycle is not yet in the psychological phase where exaggeration is punished. Retail has not yet entered. And historically, the biggest movements usually only come when they do, not before,” said the analyst.
It is uncertain whether retail capital will shift back from gold and silver to digital assets. At this moment, precious metals remain popular and attract money. As 2026 approaches, the question remains whether this preference will persist or change.
