Silver Set to Outshine Gold in 2025: LBMA Delegates Weigh In

Written by Frank Balm

Alright, let’s break this down in a way that's clear and easy to understand, like we're having a chat over coffee. The big message here is that while gold has been on a hot streak and should keep climbing, it's silver that's really grabbing everyone's attention for 2025.

So, at the 2024 London Bullion Market Association (LBMA) Precious Metals Conference, a survey of delegates (that’s just a fancy word for the attendees) showed some interesting trends. Around 45% of these folks think silver is going to be the star performer among precious metals over the next year or so. Gold came in second, with 37% betting on it to lead the pack, and platinum was the third choice. Hardly anyone had high hopes for palladium, with only 2% giving it a shot at being the top metal.

Now, let’s get into some numbers. The consensus is that gold will hit about $2,941 an ounce by next year, which is a nice 10.5% bump from where it’s at today, hovering around $2,661. That’s not chump change, but it’s far from the $3,000 mark some people hoped for. Just last year, they expected gold to stay around $1,990, so we’re already way ahead of that, thanks in part to the U.S. economy hanging in there despite inflation and a strong job market. Paul Fisher, who chairs the LBMA, pointed out that gold’s up nearly a third since the last conference in Barcelona—pretty solid growth, right?

Robert Mullin, from Marathon Resource Advisors, chimed in during a panel discussion, talking about how gold is really coming into its own as a key part of diversified investment portfolios. He pointed out something central banks are already well aware of—gold's value as a hedge against uncertainty.

But here’s where things get really interesting: silver. The LBMA delegates predict silver could hit $45 an ounce by 2025, up from around $31.45 today—that’s a whopping 43% increase! Why? Well, industrial demand for silver is through the roof, and supply just isn’t keeping up. This is creating a supply deficit that could drive prices even higher. Mitchell Krebs, the CEO of Coeur Mining, made a strong case for silver during one of the discussions, saying he’s never seen a better outlook for the metal.

Matt Watson, another industry expert, called silver the "do-all metal" on the Periodic Table, meaning it’s got a ton of uses and not a lot of downside right now. So, there’s a lot of optimism surrounding it, and for good reason.

Now, don’t sleep on platinum. It’s also expected to do well, with prices potentially reaching $1,147 by next year, which would be about a 16% increase. Like silver, the industrial demand for platinum is strong, and supply is tight, so prices could climb steadily.

As for palladium? Well, it's not looking too exciting. Delegates see it only going up by about 6%, maybe reaching $1,058 an ounce by October 2025. It’s currently sitting at $996, so not a huge jump there.

So, in short: gold’s still shining, but silver’s the one to watch, and platinum’s not far behind. Palladium, though? It’s more of a "wait and see" situation. If you’re looking to safeguard your wealth or diversify your investments, silver might be the metal to consider, especially with that kind of growth potential. Want more details on how to take advantage of this market? Don’t forget to check out Bill's book or our Seven Steps guide to protecting yourself from market shifts. It’s all about staying ahead of the curve, my friend!