Investors are increasingly turning to silver and platinum as alternative safe-haven assets, driving prices sharply higher amid concerns that gold may be overvalued following its recent rally.
Gold has surged 25% since the beginning of the year, bolstered by global uncertainty and mounting doubts over the U.S. dollar’s status as a reliable store of value. But with gold nearing historic highs, attention is shifting to other precious metals.
Silver prices have reached a 13-year high, currently trading above $36 per ounce, while platinum has climbed to $1,273 per ounce—its highest level in four years. Both metals have gained more than 10% this month alone.
“Gold is the preferred dollar hedge, and this is the next iteration of that trade,” said Nicky Shiels, a strategist at bullion refiner MKS Pamp. She noted that gold prices have nearly doubled over the past two years, prompting investors to ask, “What’s next?” amid growing concerns over U.S. fiscal sustainability.
Silver-backed exchange traded funds (ETFs) have seen inflows of over 300 tonnes in June—double the volume recorded in May. Platinum ETFs have also attracted 70,000 ounces of inflows since January, reflecting growing investor appetite.
Suki Cooper, precious metals analyst at Standard Chartered, described the moves as a “catch-up flow” for silver and platinum, which had lagged behind gold. She highlighted that the gold-to-silver ratio, historically around 65, has risen to 93, suggesting silver remains undervalued relative to gold.
Unlike gold, both silver and platinum have substantial industrial applications. Silver is essential in solar panels, batteries, soldering, and glass coating, while platinum is used heavily in automotive catalytic converters (40%), jewellery (26.5%), and other industrial processes (26%), according to the World Platinum Investment Council.
Demand for both metals is expected to exceed supply this year, driven in part by the slower-than-expected adoption of electric vehicles. This has prolonged the demand for catalytic converters in petrol and hybrid vehicles, supporting platinum consumption. Additionally, high gold prices have sparked increased interest in platinum jewellery, particularly in China, where imports rose in April.
Cooper noted that platinum is heading into its third consecutive year of structural deficit, with recent price gains reflecting tighter above-ground inventories. “We expect both silver and platinum to be in quite a deep deficit in 2025,” she said, adding that the fundamentals point to further upside potential.
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