Precious metals like gold and silver are benefiting from a confluence of factors, including geopolitical risk, central bank activity, and industrial demand. While energy markets remain more subdued, these metals offer a strong outlook for investors seeking safe-haven assets.
Gold prices have been rising throughout the year, driven by geopolitical uncertainties, inflation concerns, and central bank buying. The ongoing expectation of a Federal Reserve rate-cutting cycle is providing additional support. By the end of 2024, gold is expected to reach $2,500 per ounce, with potential upside into 2025 due to factors like de-dollarization and global economic uncertainty. Analysts see the current trend continuing, potentially pushing gold prices to $3,000 per ounce over the next year if geopolitical tensions persist and economic instability increases.
Silver has also performed strongly in 2024, bolstered by both its safe-haven appeal and industrial demand, particularly related to the green energy transition. It is seen as undervalued relative to gold, with expectations that it could reach $40 per ounce in 2025. Silver's role in renewable energy technologies, such as solar panels, continues to support its industrial demand, which could push prices higher as green initiatives grow.
The value of an investment, and income from it, can fall as well as rise. Investors could end up getting back less than they put in.
Tax treatment depends on individual circumstances and tax rules could change in the future.
Shares could fall or rise in value more than other shares listed on the main market of the NYSE & TSX. They may also be harder to sell.
Tax reliefs depend on the VC maintaining its qualifying status.
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