Forbes Africa and World Bank alum
Nayla’s Money Talk: Why the Old School Bling is Outshining the Digital King in 2025!
Hey Nayla Fam, welcome back!
You know I love a good comeback story, and in 2025, the prize for “Biggest Surprise” goes to… Gold!
If you’ve been on the investing streets in Nairobi, Lagos, or Jo’burg, you’ve heard the chatter: Bitcoin is the future, the digital gold that leaves the ancient metal in the dust. And for a while, that was true! Bitcoin had its boom, hitting wild new highs, but this year, the script has flipped.
Gold has not just been shining; it has SORED, breaking the unthinkable $4,000 per ounce mark and gaining over 50% year-to-date! Meanwhile, Bitcoin, though also hitting record prices, has a lower percentage gain for the year.
Why is this happening? It’s simple, really. When the world is chaotic, investors don’t just want growth; they want a comfy, historically proven bunker. Let’s look at why your grandma’s favorite investment is the world’s biggest winner right now.
1. The Global Panic Button: Geopolitics is King
This is the main driver, and it’s a big, messy international issue. Global tensions are high, from ongoing conflicts to trade disputes. When the world is this uncertain, investors get scared.
- The Safe-Haven Scramble: Gold is the original safe haven. It’s tangible, it has no counterparty risk, and no government can sanction it away. When people fear a major crisis, they don’t reach for a white paper; they reach for a physical asset. Gold is the ultimate, non-digital insurance policy.
- The De-Dollarization Train (Africa is a Passenger!): This is massive. Central banks globally, including many in Africa, are getting nervous about relying solely on the US Dollar (USD) as the world’s reserve currency. To de-risk their national treasuries, they are aggressively buying Gold at record levels. This institutional ‘hoarding’ by central banks anchors Gold’s price and pushes it through the roof.
2. The African Currency Hedge: When Fiat Fails, Gold is Solid
In many African nations, local currencies are under extreme pressure from inflation and debt. For many, Bitcoin is a fantastic solution, but Gold offers something simpler and more stable: a direct, proven hedge against domestic currency debasement.
- The Debasement Trade: The technical term for this rally is the “Debasement Trade.” It’s investors globally—and locally—losing faith in their government-issued paper money. You buy Gold (or Bitcoin) to protect your purchasing power. In 2025, the geopolitical fear is so high that Gold’s reputation as the most reliable store of value is giving it the edge.
- Accessibility: For all the talk of digital finance, Gold still feels more real to a lot of people. You can buy Gold jewelry, coins, or small bars from a local dealer, which is an accessible and culturally recognized way to store wealth across the continent.
3. Bitcoin’s Different Vibe: The Growth Asset vs. The Safety Asset
Look, Bitcoin is still a rockstar, up around 30% or more this year! But here is where it’s getting interesting:
- Gold follows Policy; Bitcoin follows Growth: Analysts are finding that Gold is highly sensitive to US monetary policy (like the expectation of interest rate cuts) and the health of the USD. Bitcoin, however, is acting more like a risk-on growth asset—it thrives when people are confident about global economic growth. When fear dominates (like it is now), Gold wins.
- The Dual Safe Haven: The good news is that investors are increasingly seeing both Gold and Bitcoin as crucial safe havens, just for different types of risk. Gold for geopolitical and systemic financial collapse risk, and Bitcoin for fiat currency collapse and digital freedom risk.
Your Fun & Easy Takeaway?
Don’t ditch the Bitcoin, but don’t ignore the bling!
In 2025, the smart money is betting on diversification. If your local currency is volatile (as many are), owning a piece of the world’s most stable, politically neutral asset is simply smart.
Think of it like this:
- Bitcoin is the fuel for your future growth rocket.
- Gold is the emergency parachute you hope you never have to use.
You need both to fly high and land safely! Keep it international, keep it fun, and keep making that money.
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