gold and silver prices on the rise

According to surveys during the London Bullion Market Association’s (LBMA) Global Precious Metals Conference, delegates from around the globe expect paper gold and silver prices to rally over the next 12 months.

Why it matters: Spot gold and silver prices have fallen off over the past six months, leading investors to wonder what the near-term and long-term will bring.

The numbers: Gold and silver spot prices have experienced a sizeable dip since Q1 2022. For example, gold was trading at roughly $2,043 USD/oz on March 6, 2022. As of October 21, 2022, it was trading at $1,654 USD/oz.

However, delegates from the conference are bullish on both gold and silver. They’re expecting a particularly strong bounce back from silver by way of a 54% increase over current silver prices by October 2023.

What they’re saying: “Gold is ultimately a physical market and that tells you what the trend is,” said Matt Slater, global head of precious metals forwards and physical trading at UBS, when discussing precious metals as safe-haven assets.

The bottom line: Even though higher precious metal spot prices are expected in the next 12 months, premiums on certain physical gold and silver products continue to climb due to surging demand & dwindling supplies. Retail investors around the globe are buying up gold and silver bullion to protect their portfolios now from rising inflation and fears of a looming debt crisis.