Banyan Gold Corp. (TSXV: BYN, OTCQB: BYAGF)
The New Yukon Gold Rush
So far in 2024, gold has been the brightest star in the commodities sector, with year-to-date prices having risen by some 33 per cent to close in on the recent all-time high of $2,800 per ounce. However, analysts at the World Bank believe that the precious metal to watch in 2025 is silver.
According to the World Bank’s recently released Commodity Market Forecast report, while gold is expected to continue to outperform most commodities, the latest projections show that analysts expect demand for gold to weaken between next year and 2026.
In the report, the analysts noted that central bank demand and jewellery production demand, which accounts for about two-thirds of global gold demand, is likely to slow down in the next two years as a result of record high gold prices. Gold prices are expected to fall by 1 per cent in 2025 and 3 per cent in 2026.
According to World Bank analysts, the potential returns from investing in silver could be greater over the next two years, given that growing demand and limited supply will support silver prices.
Analysts believe demand for silver is expected to grow steadily, driven by dual financial and industrial uses, with silver prices projected to rise by 7 per cent year-on-year in 2025 and by 3 per cent in 2026, on top of a projected 20 per cent rise in 2024
These projections are made by the World Bank against the backdrop of silver’s recent outperformance on gold. The price of silver has risen by more than 35 per cent so far this year and is now solidly supported above $32 per ounce. However, the gold/silver ratio remains at a high level, currently above 84.
World Bank analysts expect silver to continue to outperform gold through 2025, as it is severely undervalued compared to gold.
The World Bank is also optimistic about platinum, despite the fact that its price has struggled this year. Platinum demand from the automotive sector is expected to continue to be challenging next year, according to analysts, but there is still potential for platinum prices to rise as the supply gap increases. Platinum prices are expected to rise by 5 per cent in 2025 and 2026 respectively, after rising by 4 per cent (year-on-year) in 2024. Tightening mine supply from major producers, particularly South Africa’s declining output capacity, will support platinum prices.
While gold may lag behind next year, precious metals as a whole are still considered a safe investment. The World Bank expects base metal prices to be relatively flat next year and to decline in 2026.
The World Bank expects oil prices to fall by 6 per cent in 2025 and a further 2 per cent in 2026. While geopolitical uncertainty may cause some market volatility, analysts clearly see downside risks for oil, especially with the earlier-than-expected unwinding of the OPEC+ production cut agreement, which could lead to oversupply in the oil market, as well as weaker-than-expected economic growth, including in China.
