Goldman Sachs: Gold to Keep Outperforming Silver

SEATTLE (Scrap Monster): Goldman Sachs, a prominent investment bank and financial services company, stated in a research note released Tuesday that it anticipates gold will continue to outperform silver. It stated that the reasons for gold's superior performance were the continued high demand for gold from central banks throughout the globe and the decline in demand for silver brought on by the slowdown in the Chinese solar industry.

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According to the bank, the gold-to-silver ratio has increased dramatically from 87.4 a year ago to its present level of about 102. Given the enormous disparity, it seems doubtful that silver will overtake gold anytime soon. Nonetheless, because of the strong trading relationship between the two precious metals, higher demand for gold may help silver prices. Incidentally, silver is essential for solar panels, with each solar panel containing approximately 20 grams of silver.

So far this year, the yellow metal's price has increased by around 26%. With prices expected to reach $3,700 per ounce by the end of 2025 and $4,000 per ounce by the middle of 2026, Goldman Sachs anticipates that the bullish momentum in gold will continue. By the end of 2025, gold prices are expected to reach $3,880 an ounce in the event of a recession, mostly due to strong ETF inflows. Additionally, Goldman Sachs predicted that by the end of this year, gold prices might reach $4,500 per ounce due to changes in U.S. Federal Reserves and growing concerns about Fed independence.

In the meantime, silver prices have increased by 12% so far this year.