Precious Metals Forecast

The global precious metals forecast from multiple analysts predicts increased demand for gold, silver, platinum, palladium and other precious metals as investments continue to pile up, disposable incomes rise and lifestyles shift. 

The latest forecast predicts a compound annual growth rate (CAGR) in the precious metals market of 5.6%, from $323.71 billion in 2024 to $501.09 billion by 2032. However, because of increased demand, the forecast also warns of the potential for supply shortages and price spikes. 

Even so, the growing use of precious metals in renewable energy and electronics provides market expansion opportunities.

Here’s a look at the precious metals forecast for 2025 and beyond.

Historical Trends in Precious Metals Prices

Some analysts believe the price of precious metals to be seasonal. They’ve charted the rise and fall of gold over recent decades, generally showing the price of gold per ounce rising in the new year and spring, falling back in the summer and shooting up again in the fall.

As changes in the price of gold influence the prices of silver and platinum, these analysts also apply this gold price forecast to those precious metals.

However, historic events and economic conditions have also impacted the price of precious metals. The Great Depression led to a precipitous drop in the cost of silver from 1929 to 1939 as manufacturers made fewer products from the metal and people sold their silver for cash. Nonetheless, the price of gold rose.

The global financial meltdown of 2008 saw the price of gold skyrocket from about $800 per ounce at the beginning of 2008 to more than $1,200 per ounce by the end of 2009. Silver rose from about $11 per ounce to $20 per ounce during this period.

Monetary policy and geopolitical turmoil have also historically affected the precious metals market outlook.

In the early 2000s, the Federal Reserve kept interest rates low to stimulate the U.S. economy after the dot-com bubble burst and the 9/11 terrorist attacks. Gold prices surged as investors feared inflation from the Fed’s quantitative easing policy and looked to gold as a haven asset and hedge against inflation.

Current State of the Precious Metals Market

Precious metal prices rose about 20% in 2024, driven largely by the price of gold. The World Bank’s precious metals price index reached an all-time high in October after a 6% jump in the third quarter.

Geopolitical tensions in Ukraine and the Middle East keep gold prices high and steady industrial demand amid tight supplies supports higher silver and platinum costs.

Here’s how recent trends have impacted various precious metals:

Gold

The price of gold continues to skyrocket as conflicts rage in the Middle East and Ukraine and economic uncertainty persists around inflation and stock market volatility. People are looking to preserve their wealth, using gold to diversify their investment portfolios and store value.

Silver

As the push for sustainable and green energy picks up steam, the demand for silver continues to outstrip its supply. Despite its rarity and difficulty to extract, silver, a component in solar panels, electronics, water purification systems and other items, is used heavily in manufacturing.

Platinum

Platinum is employed across various industries, including automotive and jewelry making. While the need for platinum in catalytic converters is waning as more drivers switch to electric vehicles, the demand for platinum for hydrogen fuel cells is growing. 

Similarly, demand for platinum jewelry remains steady as disposable income continues to rise globally. A supply deficit in the last two years, expected to continue through 2025, supports higher platinum prices.

Palladium

Current palladium prices result from hard economic realities and geopolitical tension. 

Palladium is used in catalytic converters, meaning its price is heavily influenced by the automotive industry. As the need for cleaner emissions increases globally, the demand for palladium rises. That demand far exceeds the metal’s production and recycling rate, driving its price.

The supply chain also supports the price of palladium. Russia is the main producer of palladium and tensions between the U.S. and Russia drive fears of potential supply disruptions.

While these trends are expected to persist through 2025, political tensions and changes in industrial demand could alter the precious metals market forecast.

Forecast for Future Precious Metals Prices

The precious metals price forecast suggests that the prices of gold and silver may continue to rise through 2025, while platinum and palladium may fluctuate in a range that accommodates their current prices:

• Gold: Increase 17% to $3,000 or more
• Silver: Increase nearly 27% to $36.80
• Platinum: Decrease by $850 –$1,220 
• Palladium: Hover between $800 and $1,200

As investors demonstrate their concerns about geopolitics and mounting government debts, gold and silver prices are having their day. As national debts expand around the world and fears of war between major global powers swirl, more investors are putting their money in gold and silver.

Industrial demand for precious metals is anticipated to continue surging as technological advances create more uses in electronics and green technologies. However, platinum and palladium are expected to see a weakening in the automotive industry as electric vehicles gain a larger share of the market. 

Factors Affecting Future Precious Metals Prices

Given the role gold, silver, platinum, palladium and other metals play in manufacturing, finance and policy, the precious metals market is influenced by many factors. Several key elements affect the price of precious metals and broader markets.

To gain insight into future prices of precious metals, monitor the world’s major economies, inflation, interest rates and monetary policy, geopolitics, trade policies and sanctions, mining and production, market demand, sustainability measures, climate change effects and technology.

Evaluating a Precious Metals Forecast

You can see the many variables that go into forecasting the prices of precious metals. This asset class can help you diversify your portfolio and offer a hedge against inflation. However, it’s wise to weigh the factors that might impact the price of a specific metal before deciding whether such an investment fits your goals.

Frequently Asked Questions