Precious metals at all-time highs while crypto is falling: should investors really switch?

The end of the year has brought a new dynamic to the investment landscape. According to Yahoo Finance, signals of precious metals are emerging from their previous endless rally—gold and silver both reached historical records this week, reflecting strong interest in traditional stores of value.

However, while gold and silver prices are rising, the cryptocurrency market tells a different story. Bitcoin, once touted as “digital gold,” has fallen nearly 10% over the past year, while Ethereum has only slightly increased amid the decline—now down by just 3% over the same period. Overall sentiment in the crypto ecosystem remains very subdued, leading to continued declines in valuations of crypto-focused companies.

The Investment Debate: Gold and Silver Versus Digital Assets

Louis Navellier, founder of the investment advisory firm Navellier Associates, offers a direct perspective: since gold has increased by over 70% in the past year, while most crypto holdings are declining or growing very slowly, this could be a signaling moment for crypto enthusiasts to diversify into traditional precious metals.

His argument revolves around three main advantages of gold:

• Central bank accumulation: Central banks continue to buy gold, providing long-term support for its price
• Lower volatility: Compared to cryptocurrencies that can experience rapid price swings, gold and silver have more stable price action
• Enhanced liquidity: The precious metals market is deeper and has existed longer, meaning more trading opportunities

Market Reality: The Compressed Returns of Crypto

Peter Schiff, a well-known economist and investor, offers a more radical outlook. If tech stocks rise while Bitcoin stalls, and gold and silver increase while crypto continues to decline, the likelihood of digital assets having significant upside may be lower than before.

This is a critical observation for long-term holders waiting for Bitcoin and other altcoins to rise. The start of the year shows that correlation dynamics are changing, and traditional safe-haven assets like gold and silver continue to lead.

Practical Implication

For crypto investors starting the new year, the question is not just “Will Bitcoin go higher?” but “Where is the potential for higher returns—digital assets or precious metals?” The data clearly points to gold and silver at this moment: not crypto.