Gold (XAU) has had a remarkable race this year standing out among larger assets including . But it’s not just gold – its precious counterparts silver, platinum and palladium have also had strong winnings, which surpasses BTC.
While Gold’s price has risen by 44% to record $ 3,784, Silver has risen 53% to $ 44.32 per year. Troy ounces, according to data source trading. If that’s not enough, Platinum has achieved 60% to $ 1,452, while palladium has risen 33% to $ 1,207.
Meanwhile, Bitcoin has often touted as digital gold, failed to keep up with precious metals, which increased just over 20% to $ 113,000.
The verdict is clear when considering the annual performance: precious metals, led by gold, remains the go-to Safe Haven and inflation hedge in the midst of a deteriorating fiscal prospect of advanced economies, rising threat to Fed’s independence and President Donald Trump’s trade war.
In addition, central banks that diversify into gold have provided a larger tackle wind to the metal and its precious counterparts. Global central banks cumulatively hold about 36,000 tonnes of gold, according to a European Central Bank survey.
Their purchase peak started in the wake of the Coronavirus crisis and further accelerated after Russia’s 2022 invasion of Ukraine, both events that injected inflation pressure into the global economy. Over the past three years, they have added more than 1,000 tonnes annually, a record speed that is more than twice as much as the previous decade.
However, Bitcoin has not yet earned a place in the central banks’ balance, which limits its role as a reserve asset. In addition, Cryptocurrency’s winnings may have been limited by continued liquidations/distributions of old wallets over $ 110,000. These currents have reportedly displaced ETF flow.
Read more: Here are the 3 make-or-break bitcoin price floors as BTC sales collect steam
