Heraeus Precious Metals Forecast 2022: Gold and silver should benefit from inflation concerns

The price of gold could reach a record high in the new year, according to Heraeus Precious Metals, the world's largest precious metals service provider. "Gold remains a safe haven and an insurance against geopolitical risks, and the risk of persistently high inflation is also positive for gold," said André Christl, CEO of Heraeus Precious Metals, at the presentation of the annual precious metals forecast. In addition, a weaker dollar should support prices. The Heraeus experts see a range of 1700 to 2120 dollars per fine ounce of gold. Gold marked its previous record high in August 2020 at around 2072 dollars.

Heraeus expects industrial demand for silver to grow. Double-digit growth in the installation of photovoltaic systems is forecast for 2022. At the same time, silver demand from electronics will benefit this year from an increase in global smartphone sales, as well as from the continued rollout of 5G and the falling cost of 5G devices. In terms of demand for silver jewelry and silverware, Heraeus expects a return to pre-pandemic levels. Mine production, on the other hand, is expected to fall in 2022. If inflation and the weak dollar do indeed support the gold price, silver should outperform gold in these waters. Heraeus expects a range between 20 and 32 dollars per troy ounce.

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