The precious metals market is showing signs of resilience, with gold and silver prices poised to rise in the face of economic uncertainty. Analysts predict a strong bull case for gold, citing central bank purchases as a key driver of price increases.
Morgan Stanley Wealth Management notes that gold can provide a hedge against portfolio losses during economic downturns and periods of rising inflation. However, silver is more volatile due to its limited uses beyond jewelry and industrial applications.
Despite this, many experts believe that both precious metals will benefit from growing demand in emerging markets. Central banks have ramped up purchases, resetting the level of gold prices higher since 2022. Goldman Sachs forecasts gold prices to reach $3,000 an ounce by end-2025.
Analysts at Deutsche Bank and Sprott also predict strong price gains for silver, citing industrial demand and supply deficits as key drivers. However, they caution that the metal’s volatility makes it a riskier investment.
Maleeha Bengali, CEO of MB Commodities Capital, believes that 2025 will see a delicate balancing act between growth, fiscal spending, and inflation. She advises investors to consider hard assets like gold and silver as hedges against economic uncertainty and potential currency devaluation.
As the US economy faces increasing challenges, including high debt levels and rising inflation, analysts see an opportunity for precious metals to shine. With gold prices up 27% in a year, and silver gaining 24%, investors are taking notice. As Bengali said, “When that happens, hard assets like gold and silver benefit greatly as they are the only true store of value and inflation hedges.”
Source: https://finance.yahoo.com/news/analyst-revamps-gold-silver-outlook-170346532.html