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As we close out 2024 and welcome 2025, gold has once again proven why it’s the king of assets. Let’s dive into the year’s highlights and the incredible long-term performance of this precious metal.
💹 Gold Ends 2024 on a High Note
- 📈 26.6% gain for the year: Gold closed London trading with an impressive annual increase.
- 🥈 Silver shines too: Silver added 21.5% for the year, despite ending on a slight dip.
- 🌍 800% surge since 2000: Over the first 25 years of this century, gold has skyrocketed 797.7%, outperforming every major asset class.
🔮 Analysts Miss the Mark (Again!)
- 📊 2024 average gold price: $2,386 per Troy ounce, a 23.0% jump, smashing analysts’ predictions of just 6.1%.
- 🏆 LBMA Forecast Survey: Chantelle Schieven of Capitalight Research won the year’s forecasting contest but still underestimated gold’s performance by $216 per ounce.
- ⚡ Biggest forecast miss since 2013: Analysts were caught off-guard, just like in the infamous 2013 gold crash.
🪙 Silver Surprises, Too
- 💡 21.0% annual jump: Silver outperformed its predicted 6.2% rise.
- 🔄 Analysts’ silver struggle: While they’ve been too optimistic in 10 of the past 15 years, 2024 marked their 5th year of underestimating silver’s potential.
🌟 Gold vs. the Competition
- 🏦 Crude oil dips: Down 3.0%, marking its lowest year-end since 2020.
- 📉 Copper’s mixed year: Gained 3.7% but remains far below its 2023 highs.
- 📊 US equities rise: The S&P 500 gained 23.8%, but gold still stood out as a star performer.
- 💵 Dollar rebounds: A 5.6% gain couldn’t overshadow gold’s strong year.
🌐 Global Gold Highs
- 🇬🇧 UK gains: Gold in GBP rose 28.4%, the biggest jump since 2016’s Brexit shock.
- 🇪🇺 Eurozone’s best year since 2010: Gold priced in Euros soared 34.4%.
- 🇨🇳 China’s surge: Gold in the Shanghai Gold Exchange jumped 28.1%, dampening consumer demand but reflecting strong investment trends.
🔑 What’s Driving Gold’s Demand?
- 🏦 Central banks lead the way: They added nearly 15x more gold than ETFs and other investors combined.
- 🛑 Western investors stay cautious: Despite record prices, inflows to ETFs remained subdued.
- 🪙 Silver investors step up: Increased holdings significantly, showing confidence in the industrially-useful metal.
🚀 Looking Ahead to 2025
Gold’s meteoric rise in 2024 leaves analysts scrambling yet again. Will the metal continue its glittering streak? With global uncertainty and central bank purchases still strong, it’s a question worth watching as we enter a new year.
What do you think? Is gold set for another golden year in 2025? Share your thoughts below! 💬