Precious metal prices are breaking records in 2025. Gold and silver are surging in response to the weakening US dollar, which is heading for its worst year since 1973. However, analysts warn that the rally in these traditional safe-haven assets may be nearing its peak — and investors are starting to turn toward alternatives such as bitcoin and tokenized real-world assets.

Gold and silver at record highs. The market is “overheated”

The price of gold has soared by more than 50 % this year, hitting an all-time high of $4,000 per ounce in October. Silver, meanwhile, has surpassed $50 per ounce — the highest level in 45 years. Investment bank Goldman Sachs expects gold to reach as high as $4,900 per ounce by the end of 2026.

According to Nico Puckrin, founder of the education platform Coin Bureau, the current rally shows signs of overheating. “Gold is having an extraordinary year, but that’s exactly why investors may start looking for new ways to protect their wealth,” Puckrin said.

US dollar faces its worst year since the 1970s

The demand for precious metals is also driven by the sharp decline in the US dollar’s value. Analysts at Kobeissi Letter say it’s heading for its worst year since 1973. Since 2000, the dollar has lost 40 % of its purchasing power.

This “devaluation” is forcing investors to rethink their strategies. Instead of rotating between safe-haven assets (such as gold) and risk assets (such as stocks), demand is now rising for both categories at once. Analysts describe this as the beginning of a new monetary era, where governments tackle inflation and budget deficits by weakening their currencies.

Bitcoin could benefit from capital rotation

Bitcoin hit a new all-time high of over $126,000 in October. According to Matt Hougan, chief investment officer at Bitwise, BTC is well-positioned for another strong rally in the final quarter of the year.

“Investors are seeking ways to preserve wealth as fiat currencies lose purchasing power. Alongside gold and other precious metals, bitcoin is a natural choice,” Hougan said.

Bitcoin and tokenized real-world assets could thus benefit from a capital rotation — a shift of investors from traditional safe havens like gold toward digital alternatives.

Sources:

https://cointelegraph.com/news/precious-metals-trade-overheated-investors-rotate-btc

https://cointelegraph.com/news/bitcoin-all-time-high-dollar-worst-year-1973

https://x.com/KobeissiLetter/status/1974844948173447263

https://cointelegraph.com/news/bitcoin-not-overbought-bitwise-predicts-etf-surge