VIDEO — Gwen Preston, Peter Krauth: Watch These Gold and Silver Price Drivers in 2022

Gwen Preston, Peter Krauth: Watch These Gold and Silver Price Drivers in 2022youtu.be

After a year of relatively little price movement for gold and silver, investors are wondering what threw the precious metals off track, as well as what factors to watch in 2022.

Speaking to the Investing News Network, Gwen Preston of Resource Maven and Peter Krauth of Silver Stock Investor and Gold Resource Investor shared their thoughts on what's to come.

To begin, both experts emphasized that 2021 didn't actually bring poor performances from gold and silver — although there wasn't a repeat of the excitement seen in 2020, the sister metals held their ground.

In terms of what's ahead for gold, Preston said inflation, as well as the US Federal Reserve's plans for tapering and hiking rates, will be important to keep a close eye on moving forward.

"I will really be watching ... overall inflation and wage inflation together to get a sense of where the Fed will end up going — whether they will truly follow through on all these rates hikes or not," she said.

She anticipates that the yellow metal's role as an "everything hedge" will be key since uncertainty will continue to run high next year. However, it's unclear where exactly the price will go.

"I think (gold) will remain well supported as a baseline, and there's potential for excitement on top of that, but it really depends how much the role of an 'everything hedge' comes to the fore," Preston explained.

Silver will be affected by inflation and the Fed's plans too, but Krauth noted that the white metal's industrial side is also important, accounting for about half of silver demand.

"None of these things look like they're backing off," he commented in the interview. "There are multiple drivers, both from the monetary side (and) from the industrial side; silver looks like it's going to be moving higher next year, certainly from all of the angles that I see."

When asked if he thinks the metal will make it past US$30 per ounce in 2022, Krauth said it's possible.

"The range that silver's been in this year is somewhere around between US$22 and US$28," he said. "I think it's going to push that upper bound at the very least next year. I think the fundamentals and the sentiment are falling into place for that. And I think there's also pretty good odds that it'll actually challenge last year's high, which was close to US$30 ... I think we can easily challenge that again in 2022."

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.