Each new investor is paying more attention to gold and silver instead of choosing to invest in cryptocurrencies amid rising macroeconomic pressures.
This change highlights the growing popularity of classic assets for increased safety, even as Bitcoin (BTC) is positioned as digital gold with a narrative of long-term value preservation.
New investors are turning to gold as a hedge against inflation.
In the global market, individual investors are turning to gold and precious metals to hedge against inflation and economic volatility. Market observers note that those with no previous trading experience are starting to invest in gold and silver more than in crypto.
People I know who have never traded anything are now buying gold and silver. The retail side is also coming in and driving the prices of coins, just not in crypto. The long-awaited alt season has begun with precious metals, according to crypto market watchers.
In the Middle East, local media report that record-high gold prices are attracting a new generation of investors into the gold market. Gulf News states that Chirag Vora from Bafleh Jewellers noted that first-time buyers account for 55% to 60% of the demand for this gold segment, which includes Gen Z and Millennials, who increasingly see gold as a hedge against inflation.
The rise in prices has also changed purchasing behavior. Jewelry sales have decreased, but overall spending has increased due to higher prices. Buyers are focusing on investment value, opting for smaller pieces and more flexible options, including shifting interest from traditional jewelry to gold bars, coins, and lighter pieces that are easier to resell.
A similar pattern is also observed in India. The demand for gold remains divided into two sides, with the investment side remaining strong, in contrast to the weak volume of jewelry.
The demand for gold investment products, especially gold bars and coins, remains strong. The popularity in this investment side is reflected in gold imports, which have surged to 340 tons between July and October, compared to 204 tons from January to June, reinforcing the strength of investment demand, as noted by Kavita Chacko, head of research at the World Gold Council in India.
This demand is not new. In October, BeInCrypto reported that retail buyers flocked to gold shops to purchase gold and cash.
It is noticeable that there is a clear increase in new investors in this group, which confirms the generational shift back toward traditional safe-haven assets.
This change is also reflected in internet search behaviors. Google Trends revealed that interest in searching for the term 'buy gold' has consistently exceeded 'buy Bitcoin' over the past year, indicating consumer curiosity and investment trends in precious metals more than in cryptocurrency.
Although interest in gold has returned, gold still represents a relatively small portion of household investment portfolios in the United States. Kip Herriage, co-founder and manager of Vertical Research Advisory, indicated that gold accounts for about 1% of the total assets that retail investors in the U.S. hold. This means there is still room for additional allocation if this trend continues.
In the households of retail investors in the United States, gold accounts for about 1% of the total investment portfolio (even less for silver). We believe that this upward movement is just beginning, with a target price for gold set at USD 15,000 per ounce and silver at USD 200 per ounce. As the market is currently looking for the true price. In 2003, when we began recommending gold and silver (USD 350 per ounce and USD 5 per ounce), we advised investors to 'save' in gold instead of in fiat savings accounts, and we continue to strongly recommend this strategy," Herriage said.
In addition to retail investors, central banks around the world have also increased their gold holdings, with global gold reserves exceeding 40,000 tons in the third quarter of 2025, marking a peak in at least 75 years.
Central banks net purchased 53 tons of gold in October alone, a 36% increase month-over-month, marking the highest monthly net purchase of the year.
From crypto to gold: Why new investors in Thailand are choosing gold.
This demand for gold further propels gold prices upward, with gold prices reaching a new all-time high of USD 4,497 per ounce today.
Meanwhile, Bitcoin has dropped nearly 2% in the past 24 hours. BeInCrypto's latest report states that BTC has underperformed gold since the beginning of the year, while silver has become the best-performing asset, rising 138%.
Ray Youssef, CEO of NoOnes, told BeInCrypto that while gold clearly won against currency short trading in 2025 in terms of price returns, this comparison also conceals the deeper realities of the market.
The surge in gold prices to a new high and achieving a YTD profit of 67% reflects a traditional defensive positioning by investors, while capital continues to seek certainty amid a market environment defined by excessive fiscal spending, geopolitical tensions, and uncertainties in macroeconomic policy. Increased gold accumulation by central banks, a weaker USD, and ongoing inflation risks further reinforce gold's role as the market's most sought-after hedge asset.
In contrast, Bitcoin has recently failed to fulfill its role as a hedge, as current market behavior has evolved. This asset is not being traded like digital gold in 2025 as it is highly sensitive to macro factors. Currently, the upside of BTC is linked to expanded liquidity conditions, clarity in government policy, and the risk atmosphere, rather than merely due to currency devaluation," he said.
The crypto market is still in a wall of disbelief.
Although retail interest has declined, some analysts still believe that crypto may continue to grow. One analyst emphasized that in previous cycles, retail activity surged alongside the market reaching its peak. In contrast, this time, retail interest has not peaked significantly and has quickly cooled after the market's recovery.
Our Crypto Talk highlights that strong price signals in December 2024 occurred without prominent retail buying, but rather institutions, funds, and structured purchases moved the market instead.
Markets typically tend to end when retail participants are fully engaged, loud, confident, and feel fully invested. But we are not there yet. For now, the overall picture looks like a market still climbing the wall of disbelief, with prices moving up while most people are not participating, and the atmosphere remains cautious despite strong movements. This does not guarantee that prices will immediately rise tomorrow, but it is a clear signal that this cycle has not entered the psychological phase where excess will be punished. Retail investors have not yet entered, and looking back historically, the most extreme or largest movements usually occur after retail involvement, not before, analysts comment.
The uncertainty remains whether retail funds will rotate from gold and silver back into digital assets. However, currently, precious metals still attract interest and inflows, and as 2026 approaches, the question is whether this popularity will persist or change direction.
