(Kitco News) - Gold prices are expected to continue their record run over the next 12 months, but silver remains the asset to watch in 2025, according to sentiment at the 2024 London Bullion Market Association (LBMA) Precious Metals Conference.
According to the LBMA’s annual delegate survey, 45% of attendees expect silver to outperform in the precious metals space. Meanwhile, 37% believe gold will be the top asset in the sector, with platinum in third place, as 16% of delegates foresee it shining the brightest over the next year. Only 2% of participants expect palladium to outperform.
On average, delegates anticipate gold prices rising to $2,941.40 an ounce by this time next year. The LBMA forecast reflects a 10.5% increase from current levels. Spot gold last traded around $2,661.90 an ounce, up 0.50% on the day.
The bullish outlook follows a significant underestimation of gold’s potential by LBMA delegates last year. In October 2023, the LBMA survey forecast prices around $1,990 an ounce. Paul Fisher, Chair of the LBMA, noted that prices are up by one-third from last year’s conference in Barcelona, Spain. He added that gold’s rally has come as the U.S. economy remains relatively healthy, with inflation elevated and the labor market showing resilient strength.
Robert Mullin, General Partner at Marathon Resource Advisors, emphasized in a panel discussion that gold is redefining its role as a useful asset in diversified portfolios.
“Gold is a very effective portfolio diversifier. Central banks have figured that out, and I think Western investors are just starting to,” he said.
While gold still holds considerable potential in the coming year, delegates expect silver to be the most promising asset through 2025.
The survey showed that delegates foresee silver prices rising to $45 an ounce. This bullish outlook comes as silver last traded at $31.45 an ounce, up nearly 1% on the day. The LBMA forecast reflects a 43% gain from current levels.
Optimism in the silver market was echoed during a panel discussion, where experts noted that industrial demand continues to drive market deficits, with mine supply struggling to keep pace.
“I have never seen a better outlook for silver,” said Mitchell Krebs, CEO of Coeur Mining, during the discussion.
Matt Watson, Founder and President of Precious Metals Commodity Management, shared his bullish stance on silver.
“I don’t see a fundamental downside to silver,” he said. “It’s the do-all metal on the Periodic Table.”
The platinum market is also expected to perform well over the next 12 months. According to the survey, delegates anticipate platinum prices reaching $1,147.90 an ounce, a level not seen since the first half of 2023.
The forecast represents a 16.4% increase from current prices. Spot platinum last traded at $984 an ounce, remaining roughly unchanged on the day.
Like silver, analysts expect platinum prices to benefit from growing industrial demand and a deepening supply deficit next year.
Delegates were least optimistic about palladium. According to the survey, prices are expected to rise to $1,058.90 an ounce by October 2025, a forecasted 6% increase from current levels. Spot palladium last traded at $996 an ounce.
