According to the expert, investment demand for gold reached a record high in 2020, but weakened in 2021, despite factors such as negative real interest rates, rising inflation and widening deficits around the world.
However, in the second half of 2021, at least, the demand for physical gold from the main buyers - China and India - recovered significantly. He said he expects positive movement in gold prices if both types of demand work well in 2022: “If both physical buyers and professional investors return to the market, then this should increase the value of the yellow precious metal.”
Regarding silver, which is used both in industry and as an investment metal, the expert explained that although the demand for the “white precious metal” has always been more focused on industry, investor demand is also crucial to its value: “In my opinion, In 2022, how strongly institutional investors as well as large retail investors will become interested in silver exchange-traded funds and whether they will put their money in ETFs or directly in the physical precious metal will be decisive. I think this will be a key driver for silver's price."
Currently, the analyst also sees incredible upside potential in gold mining stocks. He himself favors medium and smaller gold producers, as well as early-stage exploration companies.