A rising dollar has been applying downward pressure on gold and silver following the U.S. presidential election. But market experts are still forecasting record prices for both precious metals heading into 2025.
Part of the bullish forecast relates to the Fed’s ongoing rate cutting as it eases monetary policy. Market strategists expect that to continue in spite of inflation remaining sticky. Still, the gold and silver rally has been outpacing the dollar. The former has gained a combined year-to-date gain of under 30%. The latter (based on the U.S. Dollar Index DXY) is up close to 6% for the year.
“The Fed is not done cutting [but developed-market]inflation has bottomed,” said strategist Nicky Shiels of Swiss bullion refining and finance group MKS Pamp. She sees gold gaining 14% in 2025 while silver gains 23%.
Fragile Geopolitical Backdrop
The geopolitical backdrop should also favor gold and silver. Both have been the beneficiaries of rising global tensions, leading to a safe haven flight into assets like precious metals
“The geopolitical backdrop remains fragile with global policy risk high but markets have been pressure tested this year (well, since Covid!),” Shiels added.
Investors looking to attain both gold and silver exposure simultaneously should consider using the Sprott Physical Gold and Silver Trust (CEF). This can further diversify precious metal exposure. That gives investors the growth component of silver as clean energy technology demand increases while also deriving gold’s store of value benefits.
CEF is a closed-end trust that invests in unencumbered and fully allocated physical gold and silver bullion in LGD bar form. Overall, CEF aims to provide a secure, convenient, and exchange-traded investment alternative for investors who want to hold physical gold and silver without the inconvenience typical of a direct investment in physical bullion.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
Past performance is no guarantee of future results. One cannot invest directly in an index. For the latest standardized performance and important risk disclosures regarding Sprott investment products, including each fund’s prospectus, which should be read carefully before investing, please review each product’s webpage by clicking on the corresponding ticker:
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ
Physical Bullion: PHYS, PSLV, CEF and SPPP
