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Gold will maintain and continue to grow…It has been up 80% of the time this century and has outperformed the S&P 500,” says Frank Holmes, CEO of US Funds and Chairman of Hive Digital Technology.

As part of our 2025 Outlook Series, Holmes shares his optimistic perspective on the future of gold and Bitcoin, predicting a deeper intersection between these two asset classes. “Gold and crypto are on a path to converge. Companies like Tether integrating gold into stablecoins could ignite a new level of interest in gold.”

He also highlights the cultural dynamics driving gold demand: “Asian professional women and Indian women in tech are the biggest buyers of gold at Costco. Gold has a deep cultural affinity for them.” Learn Frank’s insights on how tradition, technology, and trends are shaping the next wave of opportunities for gold and crypto.

Gold’s Resilience in the 2025 Economic Outlook

Frank Holmes emphasized gold’s enduring strength as a cornerstone investment. Over the past century, gold has outperformed the S&P 500 in 80% of the years, proving its value as a reliable store of wealth. Despite the rise of cryptocurrencies, Holmes believes gold will maintain its relevance, particularly as central banks worldwide continue to increase their gold reserves. Countries such as China and Poland have resumed significant gold purchases, reflecting its importance in the global financial ecosystem.

However, Holmes noted a growing divide between institutional and retail interest in gold. While central banks are stockpiling, younger investors appear more inclined toward Bitcoin and other digital assets. This transition signals a generational shift but does not diminish gold’s enduring role in wealth preservation for conservative investors.

The Intersection of Gold and Bitcoin Investments

The conversation also explored the dynamic between gold and Bitcoin. Holmes acknowledged Bitcoin’s meteoric rise, particularly among millennials and younger investors who are drawn to its decentralized and digital nature. He pointed out that Bitcoin ETFs have amassed $50 billion in investments within a short span, surpassing some traditional gold ETFs.

Despite Bitcoin’s popularity, Holmes argued that it is not a replacement for gold. Instead, he views the two assets as complementary, each serving unique roles in a diversified portfolio. Gold remains the ultimate hedge against economic uncertainty, while Bitcoin offers exposure to the fast-evolving digital economy. For risk-averse investors, gold’s stability makes it a safer choice.

Global Trends and the Power of Stablecoins

Holmes highlighted an intriguing trend: the rapid growth of stablecoins like Tether, which are pegged to the U.S. dollar. With over 300 million global users, stablecoins are transforming international finance, particularly in regions with unstable currencies. Tether, for instance, holds significant U.S. Treasury reserves and has emerged as a major player outside traditional financial markets. Holmes sees the potential for greater integration between gold and digital assets, envisioning a future where these two investment spheres converge.

Practical Takeaways for Investors

To navigate the 2025 economic outlook effectively, Holmes offered several actionable recommendations:

1. Diversify Your Portfolio: Include both gold and Bitcoin to balance stability and growth potential.
2. Follow Central Bank Trends: Recognize the significance of central banks’ gold purchases as a signal of gold’s long-term value.
3. Understand Generational Shifts: Acknowledge younger investors’ preference for digital assets and consider how this trend impacts the broader financial landscape.
4. Stay Informed: Leverage trusted sources like ITM Trading and experts like Frank Holmes and Daniela Cambone to remain updated on economic and investment trends.

The 2025 economic outlook presents both challenges and opportunities. By understanding the complementary roles of gold and Bitcoin investments and staying attuned to global financial trends, individuals can position themselves for success in an uncertain world. At ITM Trading, we are dedicated to helping you navigate these complexities and create a personalized plan to protect and grow your wealth.