(Kitco News) - Gold continues to attract robust investor attention; however, it is currently playing third fiddle in the precious metals market, as both platinum and silver are outperforming the yellow metal.
Platinum futures are ending the week above $1,400 an ounce. While prices are down from their July highs, they remain near an 11-year peak and are up more than 54% so far this year.
Most of platinum’s gains have come in recent months as investors move down the value chain in the precious metals market.
Meanwhile, silver futures have climbed above $42 an ounce, reaching a fresh 14-year high. Silver prices are up nearly 46% year to date.
Gold comes in third place, with prices around $3,681 an ounce, up nearly 40% so far this year.
This is not to denigrate gold; rather, the broad-based rally across the precious metals space reinforces the long-term bull market. Traditionally, gold leads at the start of a bullish cycle before being overtaken by silver and platinum—something many investors have been waiting to see as confirmation of their bullish outlook.
Both silver and platinum are benefiting from similar dynamics, as rising investor demand collides with sustained market deficits. Commodity analysts at TD Securities warned in a recent note that inventories in London Bullion Market Association vaults could be depleted within seven months. They added that if investment demand accelerates, stockpiles could vanish in as little as four months.
The analysts described this as the potential endgame in the silver squeeze they have been tracking since April 2024. With the current momentum, they suggested silver prices could surge to $50 an ounce.
Meanwhile, the platinum market is expected to see a supply deficit of 850,000 ounces this year—the third consecutive annual shortfall.
Analysts note that gold, silver, and platinum remain well supported as the Federal Reserve is expected to restart its easing cycle next week. Falling interest rates are anticipated to push the U.S. dollar and short-term bond yields lower, reducing the opportunity cost of holding these non-yielding assets.
While silver and platinum offer significant upside potential, they also carry considerable risk. Both are relatively small markets compared to gold, making them far more volatile, with price swings easily exaggerated in either direction.
It is also important to recognize why precious metals are rallying. Many investors see silver and platinum as value plays; however, the ultimate safe-haven asset remains gold.
Gold has led the sector into a bull market as confidence in the U.S. dollar erodes. President Donald Trump and his administration are undermining the Federal Reserve’s political independence and weaponizing the nation’s economy.
Gold is a low-volatility asset free of third-party geopolitical risks, making it the perfect global currency and the strongest competitor to the U.S. dollar.
Have a great weekend.
Neils Christensen
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @KitcoNewsNOW
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