emirates7 - If you're considering gold or silver as an investment to protect and grow your wealth, Goldman Sachs recommends focusing on gold for now.
In 2025, gold has surged over 26%, while silver has seen a more modest increase of 12%. Goldman Sachs predicts this trend will continue, as central banks are buying gold at record levels, while silver's main driver—solar panel production in China—is slowing down.
Gold's recent outperformance is attributed to central banks purchasing significant amounts of gold each month, growing investor concerns over the economy, inflation, and politics, and increasing demand for gold as a safe-haven investment, particularly ahead of crucial decisions from the U.S. Federal Reserve.
Currently, the gold-silver ratio stands at over 100 ounces of silver for every ounce of gold, the highest in years, signaling that silver is underperforming relative to gold. A year ago, the ratio was closer to 85, indicating that silver is unlikely to catch up in the near future.
Gold's rise is driven by:
Record gold purchases by central banks.
Investor uncertainty over economic, inflationary, and political risks.
Rising demand for gold as a secure asset, especially ahead of the U.S. Federal Reserve's decisions.
Goldman Sachs predicts that gold could reach $3,700 by the end of 2025, possibly hitting $4,000 by mid-2026. In the event of a U.S. economic slowdown or recession, the price of gold could rise even higher, potentially touching $3,880 as investors flock to gold-backed ETFs.
Should you abandon silver? Not necessarily. While silver has potential for future gains, particularly if gold continues its rally, silver's industrial ties (such as solar energy and electronics) make it more volatile and subject to global economic trends. Silver is still far below its all-time highs, so long-term investors may find value there. However, it’s unlikely to outperform gold in the near term.
For investors in the UAE, where gold is a popular form of savings, the current market conditions are favorable. With the UAE dirham pegged to the US dollar, gold priced in dollars offers a stable investment without the currency risks faced by other global investors. Additionally, Dubai’s status as a global gold hub provides easy access and liquidity for residents.
In conclusion, gold is the clear winner this year, and according to Goldman Sachs, this trend is expected to continue. If you're building a precious metals portfolio:
Focus on gold for stability and strong potential upside.
Keep some silver for long-term diversification, but don’t expect immediate gains.
Stay alert to changes from the Federal Reserve and global political developments, as these could drive gold prices even higher.
Key takeaways:
Gold has risen 26% this year, while silver has only increased by 12%.
Central banks are purchasing large amounts of gold, driving prices up.
Goldman Sachs expects gold to reach $3,700–$4,000 by mid-2026.
Silver may lag due to slowing demand from China’s solar industry.
For UAE investors, gold remains a stable and easily accessible store of value.
In 2025, gold has surged over 26%, while silver has seen a more modest increase of 12%. Goldman Sachs predicts this trend will continue, as central banks are buying gold at record levels, while silver's main driver—solar panel production in China—is slowing down.
Gold's recent outperformance is attributed to central banks purchasing significant amounts of gold each month, growing investor concerns over the economy, inflation, and politics, and increasing demand for gold as a safe-haven investment, particularly ahead of crucial decisions from the U.S. Federal Reserve.
Currently, the gold-silver ratio stands at over 100 ounces of silver for every ounce of gold, the highest in years, signaling that silver is underperforming relative to gold. A year ago, the ratio was closer to 85, indicating that silver is unlikely to catch up in the near future.
Gold's rise is driven by:
Record gold purchases by central banks.
Investor uncertainty over economic, inflationary, and political risks.
Rising demand for gold as a secure asset, especially ahead of the U.S. Federal Reserve's decisions.
Goldman Sachs predicts that gold could reach $3,700 by the end of 2025, possibly hitting $4,000 by mid-2026. In the event of a U.S. economic slowdown or recession, the price of gold could rise even higher, potentially touching $3,880 as investors flock to gold-backed ETFs.
Should you abandon silver? Not necessarily. While silver has potential for future gains, particularly if gold continues its rally, silver's industrial ties (such as solar energy and electronics) make it more volatile and subject to global economic trends. Silver is still far below its all-time highs, so long-term investors may find value there. However, it’s unlikely to outperform gold in the near term.
For investors in the UAE, where gold is a popular form of savings, the current market conditions are favorable. With the UAE dirham pegged to the US dollar, gold priced in dollars offers a stable investment without the currency risks faced by other global investors. Additionally, Dubai’s status as a global gold hub provides easy access and liquidity for residents.
In conclusion, gold is the clear winner this year, and according to Goldman Sachs, this trend is expected to continue. If you're building a precious metals portfolio:
Focus on gold for stability and strong potential upside.
Keep some silver for long-term diversification, but don’t expect immediate gains.
Stay alert to changes from the Federal Reserve and global political developments, as these could drive gold prices even higher.
Key takeaways:
Gold has risen 26% this year, while silver has only increased by 12%.
Central banks are purchasing large amounts of gold, driving prices up.
Goldman Sachs expects gold to reach $3,700–$4,000 by mid-2026.
Silver may lag due to slowing demand from China’s solar industry.
For UAE investors, gold remains a stable and easily accessible store of value.