LBMA Conference Survey See Silver Outperforming Market in Coming Year

Gold prices are anticipated to continue their record rise over the next 12 months, but silver is expected to be the asset to watch next year. This was the general sentiment at the 2024 London Bullion Market Association (LBMA) Precious Metals Conference.

The LBMA’s annual delegate survey revealed that 45% of attendees predict silver will outperform in the precious metals market. Meanwhile, 37% believe gold will remain the top performer, with platinum taking third place, as 16% of participants expect it to show the most strength over the next year. Only 2% foresee palladium outpacing the other metals, according to a Kitco report.

On average, delegates expect gold prices to rise to $2,941.40 an ounce by October next year – that would be a 10.5% increase from current prices. Spot gold recently traded at around $2,700 an ounce (October 18).

This optimistic forecast comes after LBMA delegates last year underestimated gold's potential. The LBMA survey forecast gold prices at around $1,990 an ounce in October 2023. LBMA Chair Paul Fisher said gold prices have surged by one-third since last year’s conference. He attributed this rally to the U.S. economy's relative strength, with elevated inflation and a resilient labor market supporting gold's rise.

Meanwhile, Robert Mullin, General Partner at Marathon Resource Advisors, highlighted during a panel discussion that gold is reaffirming its position as a key asset in diversified portfolios. "Gold is an effective portfolio diversifier. Central banks have recognized this, and I think Western investors are now catching on," he said.

Survey results suggest that silver will be the standout asset through 2025 despite gold retaining considerable potential in the coming year.
Delegates see silver prices climbing to $45 an ounce compared with its current level of around $32 an ounce. The LBMA prediction represents an increase of approximately 40% from current levels.

During a panel discussion, experts expressed similar optimism about silver, citing continued industrial demand and a supply deficit as key drivers. Matt Watson, Founder and President of Precious Metals Commodity Management, said: “I don’t see any fundamental downside to silver.”
Platinum is also expected to perform well over the next 12 months. Survey participants project platinum prices to reach $1,148 an ounce, a level not seen since the first half of last year. Spot platinum is trading at around $1,025 an ounce.

Analysts expect platinum prices to benefit from rising industrial demand and a worsening supply deficit next year, similar to silver.
Palladium, however, garnered the least optimism among delegates. The survey predicts palladium prices will rise to $1,058.90 an ounce by October next compared with current spot palladium prices of $1,100 an ounce.

 Philip Carter for Rough&Polished from London