Gold price growth to further outperform silver — Goldman Sachs

Goldman Sachs predicts that gold will continue to outperform silver due to strong central bank demand for bullion. Consequently, the investment bank does not anticipate silver catching up with the ongoing increase in gold prices.

In 2024, silver gained nearly 25% in value, posting one of the most impressive performances among precious metals. Even then, the white metal was losing value relative to the yellow bullion. One ounce of gold was worth approximately 80 ounces of silver, with the average for the past 20 years being 68 ounces.

Currently, as of May 2025, 102 ounces of silver are needed to exchange for 1 ounce of gold. Silver is up 19.4% this year and is now trading at $32.40 per ounce. Meanwhile, the yellow metal has risen nearly 26% to a record high of $3,500 per ounce.

This increase is due to higher inflows into gold-backed exchange-traded funds and strong demand from central banks. In the first quarter of 2025, the People's Bank of China added 13 more tons of gold to its reserves. The bank's official reserves total 2,292 tons.