LONDON (Realist English). Investors are rapidly shifting into silver and platinum as concerns mount over the US dollar’s stability and gold’s overvaluation, fuelling a sharp rally in both metals. With gold prices up 25% since the start of the year, attention is turning to other precious metals offering relative value and industrial upside.
Silver surged to a 13-year high, trading above $36 per ounce, while platinum hit a four-year peak of $1,273 per ounce this week. Both metals have gained more than 10% in June alone, with platinum on pace for its best month since 2008.
“Gold is the preferred dollar hedge, and this is the next iteration of that trade,” said Nicky Shiels, analyst at MKS Pamp. “Gold has almost doubled in the last two years — and now it’s about what comes next.”
Silver’s dual role as both an investment asset and industrial metal is amplifying demand. It is used in solar panels, batteries, and glass coatings — and is on track for its strongest monthly performance in over a year. Inflows into silver-backed exchange-traded funds (ETFs) have surged, with more than 300 tonnes added in June, up from 150 tonnes in May.
Analysts say the market is undergoing a valuation catch-up. “This does feel like a catch-up flow in platinum and silver, relative to gold,” said Suki Cooper, precious metals strategist at Standard Chartered. She noted that the gold-to-silver ratio, historically around 65, is now at 93, suggesting silver is underpriced relative to gold.
Platinum, likewise, is benefiting from strong fundamentals. Used in catalytic converters (40%), jewellery (26.5%), and industrial applications (26%), demand is expected to outstrip supply for the third consecutive year. The slower-than-expected shift to electric vehicles has preserved demand for platinum in hybrid and petrol-powered cars, while high gold prices are encouraging consumers to opt for platinum jewellery, particularly in China, where imports rose in April.
Investor interest is also accelerating: platinum ETFs have seen inflows of 70,000 ounces since January.
“With depleted above-ground stockpiles and deepening structural deficits expected in 2025, both silver and platinum have room for further upside,” said Cooper.
As fears over excessive US debt and currency devaluation grow, investors appear to be broadening their hedge strategies — and in doing so, rewriting the pecking order of precious metals.
