Gold or Bitcoin? Both!
In 2025, gold is shining like never before!
So far this year, gold has stood out among all asset classes. And no wonder — in early April, we witnessed the fourth-largest historical two-day drop in the S&P 500 index. Similar dramatic declines have only occurred during the market crash in March 2020, the onset of the 2007/2008 financial crisis, and on Black Monday in 1987.
The words fear and uncertainty, brought to the markets by Trump’s tariffs, created a perfect storm that sent investors scrambling for safe havens. This uncertainty — further fueled by an unstable monetary landscape and growing geopolitical tensions — is expected to linger, suggesting that the rise in precious metals may be far from over. Even if gold prices cool in the short term, the risks in the markets are unlikely to disappear anytime soon.
In April, gold hit a peak of $3,500 per ounce — marking an almost 30% increase since the beginning of the year, and over 50% growth over the past 12 months. This impressive performance even surpassed the 5-year return of the Nasdaq stock index. The surge was driven by market turmoil, concerns over U.S. monetary policy, and global instability.
A share of precious metals should be part of virtually every investor’s portfolio — regardless of age or investment strategy.
The only question is what percentage of the portfolio should be allocated to this sector, and how to balance between gold and silver. In any case, recent returns clearly show that precious metals remain one of the most effective ways to protect — and even grow — your wealth in the face of major systemic and other risks.
In my investment and advisory experience, this year marks the third time that gold has proven to be a crucial element in portfolio resilience. It played the same role during the 2007/2008 financial crisis, again in March 2020 with the outbreak of the COVID crisis, and now once more in 2025.
I still can’t believe we bought our first ounces back in 2006 for just over $400. Since then, prices have risen significantly — a clear reflection of how much purchasing power paper money has lost in the meantime. Gold, on the other hand, has consistently proven to be one of the best possible stores of value.
Is Bitcoin becoming increasingly resilient to monetary and geopolitical risks?
Alongside the rise in gold prices, Bitcoin has also demonstrated notable resilience in the course of 2025. This year, it has recorded an average price of around $96,000, representing a 1–3% increase since the beginning of the year. Naturally, it initially fell in tandem with the stock markets — from $109,000 down to $75,000 — but has strongly rebounded in recent days, climbing back above $90,000.
Like the equity markets, Bitcoin has experienced significant volatility, driven largely by sensitivity to geopolitical and monetary risks. Although it has shown greater resilience during certain periods, it still lacks the long-term stability typically offered by traditional safe-haven assets like gold.
Nevertheless, by early May 2025, Bitcoin has outperformed most stock markets — a historic first.
And despite showing greater volatility than gold during this period, analysts remain highly optimistic about Bitcoin’s future. Price forecasts range between $120,000 and $150,000 by the end of the year, with some even predicting $200,000, depending on institutional demand and regulatory developments.
The numbers speak for themselves — Bitcoin is becoming an increasingly significant asset for companies and institutions. Even governments are showing strong interest: Switzerland has now officially declared Bitcoin as part of its national strategic reserves.
What are the advantages and disadvantages of gold and Bitcoin?
Gold – a store of value for thousands of years, gold in its physical form is an unmatched asset class. Its supply is very limited — only about 1.5% more gold is mined each year — while demand consistently exceeds supply. It is an asset class exempt from capital gains tax, making it one of the most tax-efficient and comfortable ways to optimize wealth and tax strategy for investors. Secure storage is essential, whether in a bank or independent vault, and gold trading is heavily regulated worldwide.
Bitcoin – digital money and the first cryptocurrency have been with us in digital form since 2009. This makes it a relatively new asset class, yet one with some remarkable characteristics. Its supply is completely limited — only 21 million Bitcoins will ever be mined, making its supply fixed. With the latest halving, which occurs every four years, Bitcoin became the rarest commodity or form of money in the world — even rarer than physical gold — as the number of new coins entering the market was once again cut in half. Bitcoin must be stored in digital wallets, the market is still not uniformly regulated, and it requires proper cybersecurity skills to manage it safely.
The advantages of gold certainly lie in the fact that it has been with us for a very long time and is a time-tested asset class that has performed well through major changes, wars, inflation, collapses, and crises. It is much less volatile than, for example, Bitcoin, and holds more than just universal value — it is accepted everywhere as money, even in times when, for instance, the internet or electricity might not be available, as it is not dependent on electronic systems.
The advantages of Bitcoin, on the other hand, lie in its higher volatility, which can offer investors the potential for higher returns. It is globally transferable within minutes through a simple transaction using the internet. Bitcoin has a mathematically pre-programmed scarcity, with a maximum supply of only 21 million coins, making it the hardest asset currently in existence. It has historically outperformed all traditional asset classes in terms of growth, operates 24/7, is decentralized, outside the control of central banks, and is extremely difficult to seize or ban.
The disadvantages of investing in physical gold, on the other hand, include challenging storage and security – requiring vaults, insurance costs, and ensuring that a portion is kept in non-bank storage in case of future monetary system risks. It is also difficult to transport large amounts of wealth in gold (let alone in silver!), and additional costs may arise during buying or selling, as well as annual storage fees.
The main disadvantages of investing in Bitcoin is its volatility (which can also be an advantage in terms of potential returns), as its price can fluctuate sharply in a short period of time, leading to significant price swings. Another current drawback is the lack of uniform global regulation, although this is gradually improving day by day. The biggest risk with Bitcoin lies in investing without sufficient technological or computer knowledge — this can lead to lost access or falling victim to crypto-related scams. Since the security of your purchased Bitcoin is entirely your responsibility, this knowledge is essential. It’s also important to understand that without blockchain technology, internet access, or electricity, Bitcoin becomes inaccessible. While this is a minimal risk, it still exists.
Both Bitcoin and physical gold belong in every portfolio!
Based on more than 23 years of experience in financial advising, I personally believe that both gold and Bitcoin deserve a place in your investment portfolio. The only question is how much to allocate and how to enter both markets strategically.
Bitcoin and gold share a unique trait — limited supply — which, in a time of excessive unbacked paper money and looming global shifts likely to “reset” the current monetary order, is an exceptional advantage. Both assets also offer a degree of independence from central authorities and protection from asset control or seizure. From this perspective — scarcity and independence — both gold and Bitcoin will become increasingly attractive as the path forward is shaped by the world’s leading powers.
Despite gold’s legacy spanning thousands of years and Bitcoin’s mere first decade, both can move hand in hand in the coming years toward becoming the most attractive asset class in these uncertain times. For investors seeking stability, gold remains a reliable and essential choice, while Bitcoin offers the potential for higher returns, albeit with greater volatility. But it’s time to acknowledge what the current zeitgeist is showing us — Gold or Bitcoin? Hmm. Both!
Matjaž Štamulak, Independent financial advisor, investor, and lecturer
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