ABC Bullion is seeing record levels of activity across 2025, with the gold price spiking above $6,500 an ounce in mid-October, and surging demand accompanying it being a highlight.
The independent bullion dealer says market-leading growth has put the precious metals on the map as the preferred asset class for investors globally.
According to ABC Bullion, there is a “perfect cocktail for continued strength in both gold and silver demand, and gold and silver prices” made up of inflation, interest rates, geopolitics, tariffs, central bank demand, a resurgence of interest from ETF investors, strong bar and coin buying in physical markets, and the need for greater portfolio diversification, among others.
Yet ABC Bullion believes there is a good chance that 2026 will see more of the same level of activity as this year, with a range of high-profile institutions calling for further strength in precious metal prices.
“But the long-term fundamentals remain rock solid, with investors likely to continue gravitating toward these unmatched stores of wealth, as they have for most of this year, and indeed for the majority of this 25-year bull market cycle,” the bullion dealer reports.
The bullish long-term outlook comes as precious metal markets rallied over the past week, with gold up 1.65% to US$4,157 ($6,346) an ounce. Silver has rallied too, up 5%, last trading at US$53.40oz, with the gold-to-silver ratio (GSR) currently sitting at 78.
The gold-to-silver ratio is a measure that compares the price of gold to the price of silver, indicating how many ounces of silver are needed to purchase one ounce of gold.
“These moves put both precious metals in a good position to record another monthly price gain, with gold currently up 3.7% (USD terms), and silver up 9% (USD terms) for November so far,” ABC Bullion says.
“Similar moves have been seen for local currency investors, with the AU/USD exchange rate largely unchanged.
Year-to-date, the returns are even more impressive, with gold +60% and silver +85% in USD terms. Should these levels be maintained, 2025 will be remembered as one of the greatest years for precious metal investors on record.”
High-profile institutions have been calling for further strength in precious metal prices including from World Gold Council CEO David Tait, who has highlighted scenarios where gold rises toward US$5,000oz factoring in interest rates, inflation, and central bank buying.
Tait sees a US$5,000 gold price in a few months’ time, “unless US President Donald Trump gets lucky and gets it right by generating high GDP growth of 6-7% with moderate inflation, and brings down the deficit”.
Should Trump do that, Tait says that’ll be the point to start worrying about the price “because gold has been going higher through an inherent fear of financial failure”.
Morgan Stanley forecasts gold prices heading toward US$4,500 by the middle of 2026, with resurgent ETF demand, central bank buying, and burgeoning need for real asset hedging poised to drive demand for the yellow metal.
Equally as bullish, Deutsche sees scenarios next year where gold rises to US$4,950oz.
In a similar outlook, Goldman Sachs flags a further 20% rise for the gold price in 2026 in which it will move up toward the US$5,000 price level.
Write to Adam Orlando at Mining.com.au
Images: ABC Bullion
