Gold's shining moment might not repeat, analysts say, as silver takes the spotlight
ComMODITY Market Shift: Gold Slips, Yet Forecasters Anticipate Enticing Profit Prospects
After a record-breaking year for gold in 2024, these yellow metal aficionados are now tipping their hats to silver. In a surprising shift, analysts surveyed by the London Bullion Market Association (LBMA) predict that silver offers better investment opportunities than gold.
Gold's short-term sparkle turns dull
The experts, with a collective know-how under their belts, average a year-end price of $2,736 per ounce for gold, which is barely a skip from the current $2,762.
"Play it again, Keisuke" - that's what analysts are chanting, as Keisuke Okui of Sumitomo Corp, the most optimistic among them, predicts a whopping $2,925 by the end of the year. On the other hand, Robin Bhar of Metals Consulting, playing the gloomy role, forecasts a downturn at $2,500.
Despite the differences in opinions, geopolitical risks, US interest rate policy, and central bank purchases are expected to remain vital drivers of gold prices in 2025.
Silver's time to shine
While gold takes a breather, silver cranks up the spotlight with an average predicted price of $32.86, meaning a 16% surge from the current level.
The über optimist in the analyst crowd is Nicky Shiels of MKS PAMP, who prophesies a price of $36.50, while ABC Refinery holds the pessimist's stance with a price forecast of $28.50.
Most analysts agree that silver's catch-up with gold, high demand due to limited supply, and monetary easing could cause silver prices to soar.
Interested in diving into the silvery pool of investments? Check out The Genius and Easiest Way to Get Rich with Gold & Silver.
While the price predictions for silver in 2025 generally point to a robust increase, with analysts converging near $40 per ounce by summer 2025, some ambitions plans promise $50 per ounce by September 2025, given that industrial demand and investment inflows speed up [5]. Read more
Industrial demand growth, persistent supply shortages, the gold-to-silver price ratio, macroeconomic and financial market factors, and legal and policy developments are the main elements that analysts believe will influence silver prices in 2025 [1][2][4][3]. Learn more
Price Predictions Overview- Around $40 per ounce by summer 2025, a 40% spike from the current levels.- Potentially up to $50 per ounce later in 2025, if industrial demand and investment inflows surge.- Forecasts also suggest silver could close 2025 near $45 per ounce, a 60% gain from current prices [5].
Factors Influencing Silver Prices in 2025
- Industrial Demand Growth: Key sectors such as solar energy, electronics, AI, and electric vehicles driving demand [1]
- Supply Deficits: Earth's silver stash is dwindling, exacerbating pricing pressures [1]
- Gold-to-Silver Price Ratio: Currently skewed towards gold, indicating undervalued silver [1]
- Macroeconomic and Financial Market Factors: Looming sovereign debt crises may steer investors to silver [2][4]
- Legal and Policy Developments: Support for sound money policies and audits boost investor confidence in silver [3]
Investors considering diversifying their finance portfolio may find investing in silver an attractive option, given predictions of a 40% spike from current levels to around $40 per ounce by summer 2025. This increase could potentially reach $50 per ounce later in 2025 if industrial demand and investment inflows significantly accelerate, as suggested by some analysts. Key elements contributing to this outlook include industrial demand growth, persistent supply shortages, the gold-to-silver price ratio, macroeconomic and financial market factors, and legal and policy developments.
