Goldman Sachs Predicts Continued Gold Outperformance Over Silver

Goldman Sachs and multiple industry reports agree that gold is set to continue outperforming silver, largely due to strong central bank demand for gold, a slowdown in Chinese solar production affecting silver, and elevated recession risks. The gold-silver ratio has surged to historic highs, reflecting gold's dominant rally, with gold up over 26% year-to-date and silver lagging at a 12% gain. Goldman Sachs forecasts gold prices could reach $3,700 by year-end and climb to $4,000 by mid-2026, with potential for even higher prices in extreme risk scenarios. While silver may benefit from gold’s momentum due to their high correlation, it remains unlikely to match gold’s performance in the near term. The trend marks a structural shift, as central bank gold purchases have pushed the gold-silver ratio well above its traditional range. Despite these dynamics, some analysts note that gold mining stocks have outperformed both metals, potentially offering superior returns to direct investment in gold.