Gold is expected to continue outperforming silver in the investment markets, according to Goldman Sachs.
The bank cites three main reasons for this outlook:
- Robust central bank purchases of gold, which are supporting demand and prices.
- Slowing solar panel production in China, which reduces industrial demand for silver.
- Elevated recession risk, which typically drives investors toward safe-haven assets like gold.
This year, gold has risen by nearly 26% and reached a record around $3,500 per ounce, driven by geopolitical tensions, steady central bank buying, and increased investment flows into gold exchange-traded funds (ETFs). Silver, by contrast, has traded near $32.40 per ounce and is not expected by Goldman Sachs to match gold’s strong performance in the near term.
Investors considering precious metals should weigh the different demand drivers for each metal. Gold’s appeal in times of economic or geopolitical uncertainty—along with continued central bank accumulation—supports its role as a portfolio hedge. Silver, while having uses in industry and technology, can be more sensitive to changes in manufacturing and renewable-energy demand, making its price path less certain if key sectors slow.
In summary, the combination of persistent central bank buying, reduced industrial demand for silver from slower solar production in China, and ongoing economic downside risks underpin Goldman Sachs’ view that gold will likely continue to outshine silver in the near term.