Gold, Bitcoin, or Cash? Where Investors Are Putting Their Money in 2025

The last five years haven’t exactly been smooth sailing for Aussie investors.

With rising interest rates, inflation still biting at our heels, and global markets thrown into chaos by escalating trade wars, it’s no wonder that so many people are having a good hard think about where to park their hard-earned money.

Aside from property, which has always been a safe bet, you might be wondering whether investing in gold, bitcoin, or simply saving cash is your smartest move right now.

In this post, we’ll explore the different ways investors are going in 2025, what is driving their choices, and how you can weigh up your own options to make investment decisions that best align with your personal financial goals.

Gold

Gold has enjoyed a reputation for being a safe investment for centuries, and that is still the case today.

With geopolitical tensions simmering in parts of Europe and Asia, and US US-led trade wars being instigated by their recently elected president, many investors are falling back on the reliability of gold as an investment, given the unpredictability of current global markets.

Not only is gold tangible and historically stable, it crucially isn’t tied to a specific currency, which is why many investors see it as a solid hedge when the Aussie dollar starts to wobble.

In the last year, gold prices have started to spike, thanks largely to central banks (including the RBA) having to juggle inflation with growth. Additionally, some folks are worried about the long-term value of fiat currencies, which gold offers a buffer against.

However, gold isn’t the perfect investment because it doesn’t generate income (in the form of dividends or interest), and the storage or insurance of this commodity can be a hassle if you’re physically holding bullion.

Still, if you’re a conservative investor who values stability, it’s a good idea to keep a slice of your portfolio in gold.

Bitcoin

Once seen as little more than a fringe asset for techies and libertarians, Bitcoin has become a regular feature in the diversified portfolios of Aussie investors.

It is estimated that over 4.6 million Australians have invested in crypto, mostly through platforms like Bitcoin.com.au and via a dollar-cost averaging strategy where they regularly invest in smaller amounts.

Interestingly, younger investors, particularly those under 40, are seemingly turning to Bitcoin not just for returns, but for what it represents, i.e. freedom from centralised control, transparency, and the potential for serious growth.

Of course, Bitcoin isn’t without risk. Not least because price swings can be stomach-churning, and the crypto still lacks the predictability many investors crave.

However, if you’re comfortable with some volatility and want exposure to what many believe is the future of finance, Bitcoin could be a smart investment play.

Cash

There was a time when keeping your savings in a bank account felt safe and the right thing to do. But in 2025, not so much.

Due to inflation, the real value of cash is eroding faster than many people realise, and even with interest rates sitting higher than they were a few years ago, the return on your cash is often still being outpaced by the cost of living.

That’s not to say cash doesn’t have its place, because it is still crucial for emergency funds and short-term expenses. But as a long-term investment strategy, the general consensus among many investors is that it is not ideal.

So much so that people who once kept a large chunk of their money in term deposits or savings accounts are now reallocating towards assets that at least attempt to beat inflation, like ETFs, property, and yes, Bitcoin and gold.

Spreading the Risk

It goes without saying that the savviest investors aren’t choosing to put all their eggs into just one basket of gold, Bitcoin, or cash. They’re creating a mix that incorporates all three and falls in line with both their financial goals and risk tolerance.

For example, gold is often used as a hedge, i.e. a safety net if markets crash, while Bitcoin offers the potential for high returns and the promise of a decentralised store of value. Additionally, cash is still useful for the purposes of liquidity, but nowadays, it is rarely left idle for long.

At the end of the day, it is about balance. A diversified approach helps smooth out the bumps and gives you more control over how your money performs across different market conditions. 

What Should You Do?

When it comes to making investments in gold, Bitcoin or cash savings, the answer to the question of what you should do depends on your situation, your goals, and how much risk you’re comfortable with.

It’s a good idea to have enough cash at your disposal to cover 3–6 months of expenses. But beyond that, you should let your head make the decisions and not your heart.

You should also be mindful that you don’t have to go all in on one asset because even allocating just 5–10% of your portfolio to gold or Bitcoin can provide added protection and potential. Doing so could go a long way towards improving the returns on your investments and safeguarding your financial future.