Investors seek alternatives to gold as silver and platinum prices soar

Investors are aggressively buying silver and platinum in search of "gold substitutes" and to hedge against the dollar, causing the prices of these two metals to soar. As the dollar's status as a global capital safe haven is threatened, gold prices have seen a historic rebound. However, there are now concerns that gold may be overvalued, and other precious metals like silver and platinum are starting to catch up. Analysts at gold refiner MKS Pamp, led by Nicky Shiels, stated, "Gold is the preferred dollar hedge tool, and this trade has gone through iterations." "Gold prices have nearly doubled, and the question now is what will rise next." Standard Chartered Bank precious metals analyst Suki Cooper noted that historically, the gold-to-silver ratio has been around 65, but it is currently at 93, indicating that silver is cheap relative to gold. High gold prices have also driven an increase in demand for platinum jewelry. Cooper mentioned that platinum is facing a structural supply shortage for the third consecutive year, with prices only starting to rise now, and above-ground platinum inventories have recently been depleted. Cooper stated, "We expect severe shortages of both silver and platinum by 2025." "Therefore, there is support for further increases." Demand for platinum is also rising, with platinum ETFs seeing an inflow of 70,000 ounces since the beginning of the year