Precious Metals Surge: Silver and Platinum Outperform in 2025
In 2025, silver and platinum outshine gold in the precious metals market amid global economic shifts and de-dollarization trends.
In a year marked by economic uncertainty and shifting global dynamics, precious metals have emerged as standout performers in 2025. Gold, silver, and platinum have all posted impressive returns, fueled by market volatility, concerns over the U.S. deficit, and a trend of de-dollarization among overseas central banks.
While gold continues to captivate investors as a traditional safe haven, it's silver and platinum that are garnering increased attention. Silver recently reached a price level not seen since 2012, and platinum has surged over 30% this year, outpacing even gold's impressive 27% gain. ETF experts suggest that institutional investors have been driving the boom, leaving room for further growth, particularly for silver and platinum.
John Ciampaglia, CEO of Sprott Asset Management, notes that gold's recent performance is akin to "digital gold," moving in tandem with cryptocurrencies like Bitcoin. This shift indicates a broader acceptance of gold as a store of value alongside digital assets. However, Jan Van Eck, CEO of VanEck, highlights that while 37 million Americans have exposure to gold, a larger number—50 million—are invested in Bitcoin, suggesting a potential catch-up phase for gold.
Despite gold's allure, Ciampaglia emphasizes the untapped potential of silver and platinum. Silver's price, currently above $37 per ounce, still lags behind its all-time high of $50 in 2011. The divergence between gold and silver prices presents a compelling opportunity for investors, especially as the gold-to-silver ratio has recently been as high as 100 to 1, far from its long-term average of 60 to 1.
Silver's industrial applications, particularly in electronics and renewable energy, underpin its importance. With the deployment of solar capacity driving demand, Ciampaglia forecasts continued growth, especially as China leads in global solar initiatives. Despite potential setbacks in the U.S. solar market due to policy changes, the global supply-demand imbalance in silver is becoming more apparent to investors.
Platinum, too, is experiencing a resurgence. A persistent supply deficit, combined with increased demand, has fueled its rise. As gold prices soar, platinum becomes an attractive alternative, especially in jewelry markets. The slowdown in electric vehicle (EV) adoption further bolsters platinum's prospects, as traditional combustion engines, which rely on platinum for catalytic converters, remain prevalent.
In conclusion, while gold remains a staple in the precious metals market, silver and platinum are poised for significant growth. As economic conditions evolve, these metals offer investors promising opportunities. For those looking to capitalize on this momentum, now may be the time to consider diversifying their portfolios with silver and platinum.