Day: 21 December 2020

Price Predictions for Gold and Silver

Our gold price prediction for 2020, 2021, and the years ahead can be found below. We have also included silver price predictions. These price forecasts or price targets represent our best estimates based on the data and models that we have analyzed.

Gold bottomed around $1,050 in December of 2015 and has been trending higher ever since. The gold price has established a new bullish trend channel, with higher lows every year over the past several years.

Gold supply output declined every quarter during 2019 and in the first quarter of 2020. In fact, the decline in quarterly output has accelerated. Less supply on the market is a supportive factor for the gold price going forward.

Meanwhile, demand has been increasing, both from gold ETF inflows and from gold bullion or coin purchases. Institutional and retail investors are flocking to gold as a safe haven. Many gold bullion stores were sold out during the first quarter of 2020 and continue to have premiums of $150 to $200 over the gold spot price.

Given the above trend in gold supply and gold demand, the fundamentals suggest that gold prices are headed higher. This is why our gold forecast is very bullish and our gold price predictions point to much higher gold prices.

2020 Gold Price Prediction

2020 Gold Price Forecast: $2,500

2021 Gold Price Forecast: $3,250

2022 Gold Price Prediction $4,500

2025 Gold Price Prediction: $6,000

The last gold bull cycle propelled the gold price up by roughly 6x. If the current advance comes in similar, we can expect the gold price to continue above $6,000 per ounce during the current cycle.

2020 Silver Price Prediction

With the gold-to-silver ratio above 100 during 2020, silver looks undervalued relative to gold and has the potential to outperform over the next few years.

2020 Silver Price Prediction: $35

2021 Silver Price Forecast: $55

2022 Silver Price Forecast: $75

2025 Gold Price Prediction: $170

Roughly 50% of silver’s demand is industrial versus only 10% to 15% for gold. So, if the economy continues to struggle, silver is likely to continue underperforming versus gold. If the economy stabilizes and rebounds, silver will likely outperform gold and lead the sector higher.

We don’t have a crystal ball and these are just our best estimates of the future prices of gold and silver based on due diligence and research. But it gives some indication of just how high prices could climb in the years ahead and the potential returns for investors willing to take the risk on precious metals. As supply has flattened and demand is increasing, these factors will likely be bullish for the gold and silver price.