publication
2025-05-07 09:20
Gold will remain the favorite of investors on the precious metal market, say Goldman Sachs analysts. Forecasts indicate a possible increase in prices to even $ 4,500 per ounce, while silver remains in the shade and struggles with industrial challenges.
Goldman Sachs forecasts the further dominance of gold over silver among precious metals due to strong demand on the part of central banks, growing fears of recession on one side and a slowdown in the photovoltaic sector in China. Analysts indicate that the price of gold can reach $ 3,700 by the end of 2025, and in the case of increased tensions around the independence of the federal reserve – even $ 4,500.
The ratio of gold prices for silver increased to level 102.7 compared to 84.7 years ago, which confirms that silver cannot keep up with gold. This indicator measures how much silver ounces you need to buy one ounce of gold. “Historically, the ratio of gold prices to silver fluctuated in the range of 45-80. However, this correlation that has been ongoing for decades has collapsed after freezing Russia's reserves in 2022, which prompted central banks to increase gold accumulation as geopolitical security,” reads.
Gold with strong investor demand, silver with the weaker from industry
Currently, the price of gold is around 3380 dollars per ounce after an increase of 29 percent. from the beginning of the year. Silver oscillates around $ 33, growing by 14 % this year. Goldman Sachs maintains a bull's attitude towards gold, forecasting that its price will reach $ 3,700 by the end of the year and $ 4,000 by mid -2026. If it accelerates the inflow of gold to ETF funds – which we start to observe – the bull's script even talks about the price of $ 4,500 per ounce, in 2025.
On the other hand, they notice that silver prices are more susceptible to fluctuations in industrial demand. The main brake for silver ratings is the weakness of industrial demand, especially in the Chinese photovoltaic sector. The production of panels slowed down, which brought pressure on silver prices, the analysts noticed. Silver is an essential component of photovoltaic panels, and each panel can contain up to 20 grams of this metal, they added.
“Considering the slowdown in solar energy in China, an increased risk of recession and continuous gold purchases by central banks by 2025, we expect a further increase in gold prices to silver prices,” Goldman Sachs wrote to customers in a Monday note to customers.
So, give up silver?
Goldman reminds that silver still has growth potential, especially if the gold price continues to grow. These two metals often move together. Although silver is still recorded well below its historical maximas, long -term investors can see the value in it – it should not be expected, however, that in the near future it will approach gold.
Adam Drozdowski, managing the Invalue Multi-Asset funds managing funds, who said that the use of silver in industry is currently more important than the use as a value protecting a means of value as a value protection measure. As for silver price records, he reminded that those from the early 1980s were the result of speculation related to the activities of the Hunt brothers. “I wouldn't get to those prices,” he commented.
