Before we look ahead to what we expect in 2025, we should understand what drove the performance of gold and silver in 2024.
And… it had very little to do with us investors here in the United States.
Oh… what could have been! By the end of June, gold prices had hit a new all-time high around $2,400 per ounce. That was up from $2,063.20 at the end of 2023.
Of course, the bulls were looking for $3,000 by year end at that point. But they would be disappointed. If you recall, in my mid-year update, I suggested that a slower ascent to the gold price was a better option, with healthy corrections along the way.
In the end, the bulls were disappointed, and we saw the gold price rise slightly with some resilience for the latter half of the year.
Here is what gold did last year…
What Moved Gold Last Year?
There were three major catalysts for higher gold prices last year.
The first was Chairman Jerome Powell and the Federal Reserve. Chairman Powell and his merry band of market manipulators dominated the financial news for much of last year. Their comments around the highly anticipated interest rate cuts wreaked havoc with the gold price for the first half of the year.
Then, when the rate cuts finally started in September, the gold price soared on the Federal Reserve’s rocket fuel… reaching a new all-time high in short order near $2,800 per ounce.
The second major catalyst for gold prices was geopolitical instability. I group this into two categories… armed conflict and change.
The armed conflicts (or threats of them) are obvious… the Middle East, Russia/Ukraine, and heightened tensions in the South China Sea. Every time one of these hot spots flared up, gold’s price did as well. The safe haven trade for gold is still very much alive.
When I speak of change, I am talking about the movement all around the world to change the status quo. Whether it be in Argentina, France, Germany, or even here in the United States, citizens are raising their voices against fiscal irresponsibility and the current direction of established governments.
In 2024, dissatisfaction with governments and institutions has been a dominant theme. And gold has benefited as a result.
The last major catalyst for gold this past year was the U.S. presidential election. As we drew closer and closer to November 6th, the gold price was on a steady rise. This was clearly a reflection of that concept of change playing out… along with the fear of uncertainty in the outcome.
However, once the results were in, the gold price retreated to support levels around $2,600… where we ended the year.
What About Silver?
With more volatility, silver followed gold’s lead…
Silver started to play catch-up to gold in 2024. But the silver price gains from the start of this bull market still severely lag gold’s price gains.
Last year, both precious metals achieved roughly the same percentage gain. However, silver is still only 60% of the way to its all-time high near $50 per ounce. In contrast, gold set over thirty new all-time highs in 2024 alone!
Do not fret silver bugs. Silver’s days are coming.
So… What Did We Get in 2024?
As gold and silver investors, we got quite a bit in 2024 for which we can be thankful…
- Lower interest rates
- Steady and resilient price appreciation
- Reaffirmation of gold as a safe haven
- Continued central bank support of the gold market
- Healthy corrections
In the end, the gold and silver bugs did not get what they wanted… a moonshot in gold and silver prices. But they did get an incredibly firm foundation for record highs in 2025 and beyond.
I will talk about what to expect this coming year next week in my Perspective article. Until then, take advantage of these lower prices as an opportunity to buy gold and silver well.
These low prices will not last.
Buying now is the best way I know to Keep What’s Yours!
Take matters into your own hands. Be responsible for your own future.
