Bitcoin may have taken center stage in 2024, but gold had its best year since 2010. Worries about inflation, uncertain monetary policies and safe-haven demand due to geopolitical conflicts around the world were cited by analysts as factors for gold prices climbing more than 25% to over $2600 an ounce. Will those conditions propel gold even higher in 2025?
The potential for new tariffs and their inflationary effects might further solidify gold’s appeal as a reliable store of value and position it for another standout year. However, experts cited historical trends that it would be unlikely for gold to have back-to-back years of 25% gains and cautioned against overexposure. Investors are advised to consider diversified channels, such as physical bullion, gold ETFs, or mining stocks. Barrick Gold (NYSE: GOLD) and Newmont Mining (NYSE: NEM) are two possible large cap mining companies that are actively traded.
One trending recommendation is to maintain a portfolio that includes new safe-haven assets such as Bitcoin. In 2024, numerous financial institutions launched Bitcoin ETFs which attracted billions in capital. Fueled by optimism that the Trump administration would be more friendly to the cryptocurrency industry, there’s even talk of a possible Bitcoin reserve at the federal level.
Growing acceptance of Bitcoin alongside traditional assets like gold suggests a shifting paradigm in safe-haven investing offering investors broader strategies to navigate an uncertain economic landscape.
As of today, gold is trading at $2,673 an ounce while Bitcoin is trading at $94,232 each.
