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.
Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.
In times of crisis or even uncertainty, gold has for centuries, been the ‘go to’ asset for wary investors. Little surprise then that the precious metal has soared in recent months.
At the end of last week the price of gold hit $1,817 an ounce after climbing above $1,800 last week for the first time since 2011. Overall, gold has returned almost 30% over the past 12 months, making it one of the best-performing assets.
Its safe-haven qualities have been renowned for centuries and are what have propelled it so high in the current climate. Given the uncertainty we have seen across the globe since the start of 2020, it is little surprise that investors want a safe place for their money.
Data shows traders poured $40 billion into funds backed by gold in the first half of the year. Investment funds, which provide access to gold and related mining companies, are similarly some of the best-performers of the year so far.
And physical gold has proved increasingly popular as the pandemic has gone on. BullionVault, an online platform for trading physical gold, has seen net demand for gold from its customers buying bullion and coins, hit a record since the start of the pandemic. It is now holding a record 43.6 million tonnes of the yellow metal, worth £2 billion.
And some analysts have even speculated that gold prices could continue to soar. Back in April analysts at the Bank of America gave a prediction that the price could get as high as $3,000 within 18 months. They were not alone. Another suggestion from elsewhere was that we could see gold hit $5,000 an ounce some time in the next five years. Especially as the pandemic and other macroeconomic factors have led to such a high level of government debt around the world. The thinking is that with this likely to devalue the pound, the US dollar and the Euro, the price of gold will be driven only higher still.
The burning question right now though is more likely to be whether gold is now, already, too expensive to buy.
It was George Soros, who, back in 2010, famously dubbed gold “the ultimate bubble”. He argued that gold has very little fundamental value on which its price is based, therefore it can pop far more easily than other assets like company shares, property or oil.
It was also said at a time when the price of gold was soaring – and continued to do so for another 12 months – eventually hitting its all-time high of $1,895. So can it go past that this time around or will it fall again?
You only have to go back to last month, when the world’s economies started to come out of lockdown to see how what goes up, can come down. The price of gold fell 2.4% in the first week of June – still 11% up on the year, but nevertheless trading at around $1,682 an ounce in a shock to those who had bought in thinking the pandemic could only send it higher.
As we have said so many times in the past four months, uncertainty is the only certainty right now and having endless questions about what to invest in, where to invest, even whether to invest are to be expected.