1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
Independent research firm Metals Focus, in its annual Precious Metals Investment Focus report on October 25, stated that the gold bull market is far from over and forecasts that it will break through the $5,000 mark in 2026. Meanwhile, silver is also expected to challenge the historic high of $60 next year.
The report indicates that the current pullback in gold prices has not altered its fundamentally positive long-term outlook. Uncertainty surrounding US trade policy will remain a core driver pushing gold higher. Analysts emphasized in the report: “As demonstrated throughout 2025, US trade policy and its impact on the global economy will continue to be a key driver of gold investment sentiment.”
Beyond trade factors, analysts point to the following favorable factors collectively supporting gold prices:
Monetary Policy Environment: Expectations for further Fed interest rate cuts in an inflationary environment will lower the opportunity cost of holding gold, a non-yielding asset.
Stable Safe-Haven Demand: Trade tensions, inflation risks, and fragile market confidence will continue to drive safe-haven flows into gold.
Declining Appeal of the US Dollar: Fiscal strains and doubts about the Fed’s independence are weakening the attractiveness of the US dollar.
Continued Official Sector Gold Buying: Global central bank gold purchases are expected to remain strong.
Metals Focus forecasts that the average gold price will reach $4,560 in 2026, a 33% increase from the year-to-date average, and is expected to touch a new high of $4,850 in the fourth quarter of next year. This optimistic prediction is based on a key assessment: although investment funds continue to flow in, current investor allocation to gold remains significantly lower than post-2008 financial crisis levels, indicating substantial room for increased allocation by medium- to long-term investors.
Regarding silver, the firm expects the average price to reach $57 in 2026 and potentially challenge the $60 mark in the mid-to-late part of next year. Analysts believe that in the first half of the forecast period, silver’s performance is expected to continue outperforming gold, and the gold-to-silver ratio may decline further.
Although gold supply is projected to show a surplus of 41.9 million ounces in 2026, a year-on-year increase of 28%, this supply growth will be absorbed by robust investment demand. Simultaneously, gold mine production is expected to reach another record high, and gold recycling could increase by 6% to a 14-year high.
As for silver, industrial demand will remain a crucial support for its price, even though companies are seeking low-cost substitutes and attempting to reduce silver usage. Analysts note that although efforts to reduce usage in response to record-high prices are underway, many industrial applications require time to adjust, meaning demand will not weaken immediately. On the supply side, the structural deficit in the silver market is easing. The supply deficit is expected to narrow from 143.6 million ounces in 2024 to 63.4 million ounces in 2025 and further decrease to 30.5 million ounces in 2026.
Metals Focus specifically points out that physical liquidity in the London silver market may remain relatively tight in the short term, primarily due to strong investment demand, Indian demand, the structural deficit, and policy uncertainty causing significant silver stocks to remain in the US.
Regarding the entry timing concerns of investors, the report emphasizes: “Although prices have retreated from their highs, the conditions that created these record highs still exist. Investors should monitor interest rate movements, inflation levels, the strength or weakness of the US dollar, and market sentiment regarding the Fed’s independence, while closely tracking developments in US trade policy.”
Overall, Metals Focus maintains a firmly bullish stance on the precious metals market, viewing the current gold price pullback as merely a healthy consolidation within a long-term bull market. With persistent global economic uncertainty, continued central bank gold buying trends, and the release of investor allocation demand, gold and silver still possess significant upside potential in 2026. For investors worried about missing out, the precious metals market in Q4 2025 and heading into 2026 will continue to offer abundant investment opportunities.
