Bitcoin or Silver: Top Investor Picks the Superior Asset to Buy

Crypto and precious metals are often discussed in the same breath because both are viewed as potential hedges against traditional monetary systems. Gold and silver, in particular, have a long history as monetary alternatives and have largely maintained their purchasing power relative to modern fiat currencies.

Bitcoin (BTC) entered this discussion much more recently. While it was originally conceived to serve as both a currency and a store of value, its use as an everyday medium of exchange has remained limited. That said, its price appreciation and fixed supply have led many investors to view it as a long-term store of value, often described as a form of digital gold.

That parallel, however, has started to weaken when looking at recent market performance. While precious metals have surged to fresh highs, Bitcoin has moved in the opposite direction. Silver, in particular, has been on a remarkable run: even after Friday’s sharp pullback, it has gained ~172% over the past twelve months. Bitcoin, by contrast, has delivered far less excitement, retreating 35% from its October all-time high and sitting about 24% lower over the past year.

But if you’re thinking Bitcoin has lost its luster and are contemplating chasing silver’s rally, top investor James Foord has some very simple advice: “Long Bitcoin, short silver,” the 5-star investor said. “With the recent divergence between precious metals and Bitcoin, I think this sets up an interesting contrarian pair trade idea.”

Investors have increasingly shifted toward Silver as part of the “debasement trade,” which involves allocating to hard assets as a hedge against the declining purchasing power of fiat currencies, particularly the U.S. dollar.

Foord, who ranks among the top 1% of investors, argues that this is the natural order of things. Along with gold, silver tends to respond more quickly to the debasement trade, as these precious metals are more widely understood and can be accumulated more easily by institutions and macro-focused funds. That pattern also played out during the Covid era, when Bitcoin’s rally began later than silver’s. The same could happen again here.

At the same time, Foord believes the dynamics for Silver and Bitcoin are likely to evolve over the rest of the year. Silver’s appeal partly reflects industrial demand, but higher prices tend to draw additional supply back to market and encourage substitution toward other metals, while a further increase in CME margin requirements could abruptly cap the rally. Additionally, Bitcoin continues to gain acceptance as a monetary hedge, with more significant structural changes expected in 2026 following the GENIUS Act and, at present, the CLARITY Act.

“Ultimately, I think we could very well see a rotation into Bitcoin,” the 5-star investor said, before adding, “Silver has already delivered on the debasement trade, but Bitcoin hasn’t, and I believe this could change.” (To watch Foord’s track record, click here)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.