Is an Era of ‘Gold at $5,000 and Silver at $100’ Coming Amid ‘Resource Nationalism’?

[Financial News]


It is being forecast that “resource nationalism” will push gold and silver prices even higher this year.
With gold and silver prices hitting all-time highs on the 14th (local time), the added factor of resource nationalism is expected to drive prices sharply upward.
Analysts now expect that an era of gold at $5,000 and silver at $100 per ounce will soon arrive.

Gold and silver prices are renewing all-time highs day after day.
Spot gold prices climbed intraday to a record $4,641.40 per ounce, while February gold futures also set a new all-time high at $4,644.30 per ounce.
Spot silver likewise set a fresh record, reaching $92.23 per ounce during intraday trading.
After surging 65% last year, gold broke above $4,600 per ounce for the first time ever on the 12th, while silver, which skyrocketed 150% last year, pierced the $90-per-ounce level on the 13th.
Spot platinum jumped 3% to $2,394.13 per ounce, and spot palladium edged up 0.1% to $1,841.10 per ounce.

On the same day, U.S. President Donald Trump once again expressed his intention to annex Greenland, underscoring how resource nationalism is becoming a central issue this year.
On the 14th, Consumer News and Business Channel (CNBC), citing analysis by Daniel Casali, a partner in charge of investment strategy at U.K. asset manager Evelyn Partners, reported that in the current wave of resource nationalism, gold and silver prices are expected to maintain a strong upward trajectory this year.
Casali explained that geopolitical instability—such as the Russo-Ukrainian War that began in 2022 and President Trump’s announcement of the “Liberation Day Tariffs” last April—has created ongoing uncertainty, which in turn continues to push up the price of gold as a “safe-haven asset.”
He said that as major countries gear up for a trade war, today’s environment of “resource nationalism” has taken shape, and this will serve as an additional driver for further gains in precious metal prices.
Casali pointed out that when Trump raised tariffs, China responded with export restrictions on rare-earth elements (REE), calling it a resource nationalism battle.
Following its curbs on REE, China has also restricted exports of silver, which is essential for Artificial Intelligence (AI), Electric Vehicles (EV), Renewable Energy, and other advanced industries.
He added that all eyes are now on the April summit in Beijing between Trump and Chinese President Xi Jinping, predicting that export controls will be the core topic of the U.S.–China summit.

Ned Naylor-Leyland, head of gold and silver investments at Jupiter Asset Management, told CNBC that it is almost a foregone conclusion that gold will break above $5,000 per ounce and silver above $100 per ounce within this year.
He stressed that, given the various factors driving precious metal prices higher, an era of gold at $5,000 and silver at $100 per ounce will clearly arrive this year.
Naylor-Leyland predicted that last year’s sharp rally in gold and silver prices will be repeated this year, and that, as was the case last year, silver in particular will show especially strong performance.

He cited China’s controls on silver exports last year, which led to a shortage of physical silver, as the main reason behind his bullish outlook for silver prices this year.
Naylor-Leyland noted that silver prices are so strong in Shanghai that a premium of about $10 per ounce is being paid, and that prices are also firm in China and India, causing silver to keep flowing into these two countries. He predicted that if such premiums persist, silver from markets in New York City or London will continue to be drawn toward China and India, where prices are higher.
Unlike gold, the absence of silver would cripple broad swaths of industry, because it is a fundamental material used in computers, smartphones, automobiles, and home appliances.
“Without silver, you cannot manufacture anything,” Naylor-Leyland said, adding, “Production of EVs, home appliances, missiles, and automobiles is impossible without silver.”
He forecast that, with industrial demand layered on top, silver prices will once again outpace gold in terms of percentage gains this year.
The rise in silver prices is ultimately expected to push up raw material costs and thereby increase inflationary pressure.

dympna@fnnews.com Song Kyung-jae Reporter