Silver and platinum prices are surging as investors increasingly seek alternatives to gold and protection against a weakening US dollar, according to a report by the Financial Times. With gold up 25% this year and concerns growing that it may be overvalued, attention is turning to other precious metals — pushing silver to a 13-year high and platinum to levels last seen in 2021.
“Gold is the preferred dollar hedge, and this is the next iteration of that trade,” said Nicky Shiels, an analyst at bullion refiner MKS Pamp. “Gold has almost doubled [in the last two years], and it is the ‘what’s next?’ mentality.”
Silver prices have climbed above $36 per ounce, and platinum hit $1,273 this week, marking an 18% jump since the beginning of June — its best monthly performance since 2008. Both metals are up more than 10% this month alone, fueled by mounting investor inflows into exchange-traded funds (ETFs) and renewed industrial demand.
Silver-backed ETFs saw inflows of over 300 tonnes so far in June, doubling the previous month’s tally, while platinum ETFs added 70,000 ounces since January. Suki Cooper, precious metals analyst at Standard Chartered, said the surge reflects a “catch-up” effect relative to gold. “The gold-to-silver ratio is now at 93, far above the historical average of 65, suggesting silver remains cheap,” she noted.
Beyond their appeal as dollar hedges, silver and platinum benefit from significant industrial demand. Silver is used in everything from solar panels and batteries to glass coatings and soldering, while platinum is a key material in automotive catalytic converters, jewellery, and other manufacturing processes.
The slower-than-expected shift to electric vehicles has helped support platinum prices, as petrol and hybrid cars — still dominant in many markets — require the metal for emissions control systems. Additionally, high gold prices are prompting consumers, particularly in China, to turn to platinum jewellery as a more affordable alternative.
Supply-side pressures are also playing a role. Both metals are expected to face significant deficits in 2025, with above-ground stockpiles of platinum already showing signs of depletion. “We expected both silver and platinum to be in quite a deep deficit,” said Cooper, indicating potential for further upside.
While gold continues to act as the benchmark for investors seeking safety in times of economic uncertainty, the surge in silver and platinum suggests a growing appetite for diversification — and a belief that these overlooked metals may offer better value in the months ahead.
