The prices of silver and platinum grow vertiginously, investors looking for “alternatives to gold”
Investors invest in silver and platinum, in search of “alternatives to gold” and protective measures in the face of the evolution of the US dollar, which leads to a vertiginal increase in the prices of both metal, writes Financial Times.
Given that the status of refuge currency for the global capital of the American dollar is threatened, gold has undergone historical growth, 25% since the beginning of the year, investors using it as a protection against uncertainty.
However, against the background of concerns that gold could now be overvalued, other precious metals, such as silver and platinum, begin to recover the gap. The prices of silver have increased to a maximum of the last 13 years, and platinum prices are at the highest levels in the last four years, both metals increasing by over 10% this month.
Nicky Shiels, an analyst at MKS PAMP, said concerns about excessive US government loans have pushed investors to look for alternatives to dollar.
Silver, which is used in both coins and industrial processes, is about to record the best month of the last year, with prices currently over $ 36 per ounce.
Investments in funds traded on the stock exchange (BTF) guaranteed with silver have accelerated suddenly, with over 300 tons of inputs so far in June, compared to 150 tons of entrances last month.
“This feels like a recovery of the gap between platinum and silver, in relation to gold,” said Suki Cooper, precious metal analyst at Standard Chartered.
The gold-silver ratio, which was a history of around 65, is now at 93, which suggests that silver is cheap compared to gold, she said.
Unlike gold, silver and platinum have significant industrial uses, and the demand for both metals is expected to exceed the offer this year. Silver is used in manufacturing processes such as gluing and manufacturing solar panels, as well as batteries.
Platin prices have increased to a maximum of $ 1,273 this week and increased by 18% since the beginning of the month, placing June as the best month for platinum in 2008.
The platinum demand is distributed between car catalysts (40%), jewelry (26.5%) and other industrial applications (26%), according to data from the World Platin Investment Council.
Adopting slower than the expected vehicles expected was an advantage for platinum demand, because both gas and hybrid cars use platinum in their catalytic converters.
High gold prices have also stimulated the demand for platinum jewelry as a consumption alternative. China platinum imports increased in April, indicating a renewed interest in platinum jewelry in this country.
Platinum was experiencing a third consecutive year of structural deficit, and prices only now began to increase in response to this deficit, because the availability of platinum stocks from the surface had recently been exhausted, Cooper said.
“We were expecting both silver and platinum to record a pretty big deficit in 2025,” said Cooper. “Therefore, there are arguments for greater growth.”
The demand of investors for platinum has also been increasing, with platinum ETFs registering 70,000 ounces from the beginning of the year.
