2024 proved to be a standout year for precious metals and set the stage for a strong 2025. While overall commodities were flat (+1%) last year, gold and silver exhibited a sharp divergence, rallying by +26% and +22% respectively.

Market Overview
While US equities were the clear outperformers in 2024, gaining +30%, long-term bonds struggled, posting a decline of -11%. The US Dollar Index (DXY) ended the year at ~108, up +7%, marking its highest level in 24 years. Bitcoin emerged as a top performer in 2024, surging by approximately +120%, outpacing traditional fiat havens such as the Swiss Franc (CHF) and Japanese Yen (JPY), both of which struggled with investor trust.

Central Bank and Retail Demand
Central banks continued to demonstrate robust appetite for gold, adding 30 million ounces in 2024, a trend expected to persist in 2025. Their demand far exceeded retail investor additions, which totaled 2.1 million ounces of gold. Silver holdings, on the other hand, grew by 32 million ounces, even as platinum group metals (PGMs) like platinum, palladium, and rhodium experienced net outflows.

2025 Outlook for Precious Metals
Gold and silver are poised for another dynamic year, driven by several key factors:

• Central Bank Demand: Sustained interest from central banks will continue to support gold prices.
• Geopolitical Uncertainty: Heightened risks, including the "Trump chaos premium," are likely to bolster safe-haven demand.
• Silver’s Industrial Rebound: Increased adoption in green technologies and electronics should drive investor interest in silver.

Below are MKS Pamp’s price forecasts for 2025 (right hand side of table):

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