Silver, platinum shine bright as investors seek gold alternatives

Financial Times describes in a fresh article that investors are increasingly turning to silver and platinum as “gold alternatives” and hedges against the US dollar, driving sharp price gains in both metals.

With the dollar’s role as a global safe haven facing challenges, gold has surged 25 percent since the start of the year as investors seek protection amid economic uncertainty. However, concerns that gold may now be overvalued have sparked renewed interest in other precious metals like silver and platinum. Silver prices have climbed to a 13-year high, while platinum has reached its highest level in four years, with both metals rising over 10 per cent this month.

“Gold is the preferred dollar hedge, and this is the next iteration of that trade,” said Nicky Shiels, analyst at bullion refiner MKS Pamp. “Gold has almost doubled \[in the last two years], and it is the ‘what’s next?’ mentality.” Shiels added that worries over excessive US government borrowing are pushing investors to look beyond the dollar.

Silver, widely used in coinage and industrial applications like soldering and solar panel production, is on track for its best month in over a year, trading above \$36 per ounce. Silver-backed exchange-traded funds (ETFs) have seen inflows of more than 300 tonnes in June, doubling May’s 150 tonnes.

“This feels like a catch-up move in platinum and silver relative to gold,” said Suki Cooper, precious metals analyst at Standard Chartered. She noted the gold-to-silver ratio has risen to 93 from a historical average near 65, suggesting silver remains undervalued.

Platinum prices hit \$1,273 per ounce this week, up 18 per cent since June began, poised for its strongest month since 2008. Demand for platinum is divided among automotive catalysts (40 per cent), jewelry (26.5 per cent), and other industrial uses (26 per cent), according to the World Platinum Investment Council.

The slower-than-expected adoption of electric vehicles has supported platinum demand, as petrol and hybrid vehicles use platinum in catalytic converters. Rising gold prices have also boosted platinum jewelry demand, with Chinese imports increasing in April.

Platinum is heading toward a third consecutive year of structural deficit, with prices now rising as above-ground stocks dwindle. “We expected both silver and platinum to be in quite a deep deficit in 2025,” Cooper said. “So there is support for more upside.”

Investor interest in platinum is also growing, with ETFs seeing inflows of 70,000 ounces since the start of the year.

By Naila Huseynova