these specialists, goldsilver.com and Curt Nelsen, founding partners, you know,
Summer Haven Investment Management. Thank you both for being with us and Alan, you
talked about how well gold and silver have done this year and in fact that the
demand has been very strong even in some cases almost outweighing the
supply. A little bit about the picture that has has been. Yeah so both
metals are up about 30% on the year which is pretty impressive and it's a
lot more than most analysts were predicting at the start of 2024 and yes in
the case of silver in particular demand is outstripping supply and so 2024 has
been the fourth year in a row where that has been the case and 2025 is probably
going to be the fifth year where demand continues to outstrip supply. So for
sure in the case of silver I'm definitely expecting the price to
continue to increase next year because of that supply demand mismatch and in
the case of gold I'm expecting it to go up for a completely different
reason it's because gold is money it's an inflation hedge it's a safe haven it's
gonna help protect investors against inflation and we're seeing that in
the United States and all over the world so I'm expecting both metals to go
up in 2025. I mean Curt you noted how consumers are really interested in
these precious metals so much so that they go to Costco to buy some gold
that being said you think this will continue into 2025 as well. Yes
hi great to be here today and I do think this rally is going to continue.
You know I think commodities more than any other asset trade on supply and
demand and you know you can't just print gold or print silver the way you
can print money or bonds or stocks you know through a secondary offering you
have to mine it and refine it and store it and so you know when demand
increases and is steadily increasing that creates a potential shortage in
higher prices. We've seen consumer demand as you said at Costco sort of
you know 200 million dollars a month they're running out each month and
have to restock for this to me this this retail demand on the other end
of the spectrum completely are the central banks around the world they
often use in addition to for example euros or dollars or treasuries as a
reserve they often hold gold and that's been increasing and I have some
reasons for believing that to be to continue but we do know just factually
in the first half of 24 that was something like 483 tons of gold we
think about gold and you know dollars per ounce we don't measure in tons very
often that was more than 40 billion dollars of gold the central bank
spot and there's a good reason for it there's concerns about the deficits in
the U.S. and about the potential shakiness to you know the
independence of the Fed to what treasuries going to do is as the cost of
financing this debt gets higher and higher and higher we don't really know
what 25 is going to bring with the Trump administration and a
Republican House and Senate also I think one of the things we've learned
in the last few years is that having dollar assets exposes a nation to
the long arm of the U.S. law and I think about Russia for example you
might hold dollars or treasury bills as a reserve asset but they learned the
hard way that America could decide to freeze those assets after Russian
rated Ukraine so any foreign country that is concerned about a unilateral
move by the U.S. to make them a pariah has to have a little bit concerned
about having everything in dollars and gold is a backup currency for those
for those central banks as well I think that will continue in 25.
Yeah and Alan you have some some looks as to where we could be headed as far as
target prices Goldman Sachs talks about gold going to 3,000 in 2025 I see you
have your targets silver going up 25 percent tell me about your targets
for gold and silver for 2025.
Well sure so by the way remember that most of these investment banks when
they were choosing their targets for gold at the start of 2024 they were
all super low they put up numbers like 2100 2200 2300 and that's it and they had
to keep revising their forecast up throughout the year and here we are
around 27 so yeah I think $3,000 next year is pretty much a guarantee I mean of
course it's not a guarantee but I think that's that's a that's a lowball
guess 3,000 I think about 3150 could be reasonable remember earlier this
year in 2024 you could buy gold under $2,000 an ounce that feels like
ancient history but it was earlier this year you could get it in the 1900s so
2024 was the last year you could get it under 2000 I think 2025 might be the
last year you can get it under 3,000 so I'm expecting it to go up and never
look back in the case of silver I'm thinking about 25% on the year would be
reasonable of course it's up 30% this year but I think 25% next year is
reasonable so put it around $40 an ounce of course that's still off its
all-time high of roughly 5250 but the following year 2026 I'm expecting it to
break out into all-time highs and never look back so it should be another good
year or two for both metals yeah and we've seen China once again showing its
interest in demand for gold I mean people have been talking about that
Kurt we only have a few seconds left a final quick thought for 2025 sure you
know just as a reminder for everyone you know one of the main reasons for having
gold is as a store of wealth that's been used for centuries that way and you
know a couple hundred years ago an ounce of gold would buy you a nice wool suit a
pair of leather shoes and a dinner and it sort of does today at around $2,500
and I think that that sort of safe haven asset in a risk-off event we
don't know what 25 is going to bring I think but it could be volatile it
could be a lot of changes with tariffs and different administrative you
know decisions by the Trump administration that that will shake things up
from its Goldilocks kind of point right now I think that could be really tough on
stocks and bonds I think that chaos is going to do very well for gold all right
great to see you both thank you so much really appreciated Alan Hibbert
goldsilver.com