Well, Bank of America seems to have turned into a bit of a precious metals bull, announcing in recent days it has raised its one-year gold price target to $4,000 and silver to $40.
Last October, the big bank had only projected $3,000 for gold in 2025.
BofA analysts said trade-induced geopolitical uncertainty would continue to support precious metals prices, with growing concern about the U.S. government’s fiscal situation and a declining U.S. dollar possibly catalyzing the next leg up.
Treasury yields spiked this month after Moody’s downgraded the U.S. credit rating, indicating investors are becoming more wary of holding U.S. debt.
Bank of America analysts do feel gold prices will consolidate here for a few months before moving higher, and they say investment demand will still need to increase and jewelry demand will need to remain firm.
As for silver, the bank called it “one of the better investments” thanks to both industrial and investment demand.
Industrial demand for silver set a record in 2024, driving the silver market to its fourth straight structural deficit. This demand is expected to remain robust in 2025, despite some headwinds from tariff worries and supply chain disruptions.
As for this week’s market action, gold is off 2.0% now to trade at $3,303. The yellow metal has spent most of the last two months trading in a range between $3,250 and $3,350, and we find ourselves right in the middle of that range here now, with just a few hours left in another week of trading.
Turning to silver, it is off 1.6% since last Friday’s close to check in at $33.17 an ounce. The stubborn gold to silver ratio can’t seem to shake off the near 100 to 1 mark that we’ve seen since early April, as we figure to get another weekly close at just about that number yet again.
Platinum is finally cooling off a bit this week to come in at $1,070. The industrial metal is down 3.9% this week after advancing double-digits last week. And finally, palladium is off 3.1% and currently trades at $996 as of this Friday morning recording.
Turning to Money Metals’ ongoing advocacy for sound money legislation across the nation, the State of Florida has just passed its second sound money bill in the past three years.
Governor Ron DeSantis signed H 999 this week, paving the way for the elimination of the Sunshine State’s remaining sales taxes on purchases of gold and silver coins, bars, and rounds.
Taxation on precious metals is the greatest impediment to citizens adopting their own personal gold standard.
As of today, though, 46 states have either partially or fully exempted gold and silver purchases from sales taxes — and 14 states have exempted gold and silver sales from income tax.
Money Metals is highly responsible for all the progress seen at the state level, having dedicated something like 20,000 hours of staff time and many other resources to these sound money projects in recent years.
America’s 54-year experiment in a purely fiat currency system has gone poorly. Without backing of gold or silver, the Federal Reserve note “dollar” has continuously declined in purchasing power. The nation has faced a series of Fed-created booms caused by interest-rate manipulation, followed by busts as well as an explosive growth in government spending and debt.
When savers, wage earners, and investors seek ways to protect their savings from the ravages of inflation, they often choose precious metals over fiat currency because precious metals have preserved purchasing power over time.
Removing the friction of taxation when buying or selling gold and silver remains a very high priority for Money Metals — and investing in this important policy area is something we feel we owe to our Money Metals customers… and it’s something we can do to help our fellow citizens and our nation.
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