Gold and Copper Outshine Bitcoin as Investors Flock to Tangible Assets

Gold and copper have emerged as 2025’s top-performing assets, with gold leading the charge. Bitcoin, long touted as “digital gold” and a high-tech hedge, has lagged behind, failing to capture investor attention amid a year defined by both macro uncertainty and an AI-driven growth surge.

Year-to-date performance data underscores this divergence. Gold has surged roughly 70% to a record high above $4,450 per ounce, while copper—a barometer of global economic health—has gained 35%, according to TradingView. By comparison, the S&P 500 and Nasdaq have risen 17% and 21%, the 10-year Treasury note has fallen 9%, Bitcoin is down 6%, and the dollar index has slid nearly 10%.

The unusual combination of top performers—a traditional safe haven and an industrial metal linked to AI—signals a shift toward tangible assets. Early in the year, analysts predicted that macro concerns, geopolitical tension, and a bullish regulatory outlook would propel Bitcoin. Yet the narrative of Bitcoin as digital gold has struggled to convince institutional investors, according to Markus Thielen, founder of 10x Research.

“Many crypto narratives now resemble passive allocation stories or long-term value preservation, rather than compelling use-case–driven growth,” Thielen said, noting limited inflows from a new cohort of investors.

Investors have favored gold amid fiscal uncertainty, tariff-driven political risks, fiat debasement fears, and concerns about the Fed’s independence. Copper, meanwhile, has benefited from AI-related demand, electrification, digital infrastructure expansion, and constrained supply amid geopolitical tensions.

Greg Magadini, director of derivatives at Amberdata, highlighted a key distinction: “Gold is the ‘hard asset’ for sovereigns, while Bitcoin remains largely a portable hedge for individuals and speculative investors.” Without sovereign adoption, Magadini said, BTC faces limits on its performance despite ETF approval, positive regulations, and treasury narratives being largely priced in.

Central bank buying has also fueled gold’s rise. According to the World Gold Council, global central banks purchased 254 tons of gold from January to October, particularly in Asia, reinforcing the metal’s safe-haven appeal.

Despite Bitcoin’s lag, some experts see its consolidation as setting the stage for a major rally. Lewis Harland, portfolio manager at Re7 Capital, noted, “Gold’s breakout is not a bearish signal for Bitcoin. Historically, Bitcoin responds to safe-haven and debasement trades with even greater momentum, and the current pause may be building energy for a strong move.”

The broader market takeaway is a flight to tangibility. Gold and copper’s record highs, coupled with underperformance in the dollar, Treasury notes, and equities, indicate that investors are favoring assets with intrinsic value over those reliant on fiat liquidity or paper promises.

The copper-to-gold ratio, a barometer of economic health, has dropped nearly 20% to its lowest level in over two decades, signaling a “late-cycle” or fragile expansion environment—driven by AI growth but constrained by fiscal, trade, and geopolitical pressures. In 2025, investors appear to be simultaneously betting on growth from technological innovation and protection against systemic risks, with tangible assets taking center stage.

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