A rising dollar has been applying downward pressure on gold and silver following the U.S. presidential election. But market experts are still forecasting record prices for both precious metals heading into 2025.
Part of the bullish forecast relates to the Fed’s ongoing rate cutting as it eases monetary policy. Market strategists expect that to continue in spite of inflation remaining sticky. Still, the gold and silver rally has been outpacing the dollar. The former has gained a combined year-to-date gain of under 30%. The latter (based on the U.S. Dollar Index DXY) is up close to 6% for the year.
“The Fed is not done cutting [but developed-market] inflation has bottomed,” said strategist Nicky Shiels of Swiss bullion refining and finance group MKS Pamp. She sees gold gaining 14% in 2025 while silver gains 23%.
Fragile Geopolitical Backdrop
The geopolitical backdrop should also favor gold and silver. Both have been the beneficiaries of rising global tensions, leading to a safe haven flight into assets like precious metals
“The geopolitical backdrop remains fragile with global policy risk high but markets have been pressure tested this year (well, since Covid!),” Shiels added.
The World Gold Council confirmed the strength of precious metals, especially gold. Supporting prices this year have been “central bank and investor buying have more than offset a notable deceleration in consumer demand.”
Investors looking to attain both gold and silver exposure simultaneously should consider using the Sprott Physical Gold and Silver Trust CEF. This can further diversify precious metal exposure. That gives investors the growth component of silver as clean energy technology demand increases while also deriving gold’s store of value benefits.
CEF is a closed-end trust that invests in unencumbered and fully allocated physical gold and silver bullion in LGD bar form. Overall, CEF aims to provide a secure, convenient, and exchange-traded investment alternative for investors who want to hold physical gold and silver without the inconvenience typical of a direct investment in physical bullion.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
Past performance is no guarantee of future results. One cannot invest directly in an index. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management LP or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ
