How do silver and platinum outpace gold? The major turning point behind the ten-year high

The recent blockbuster in the precious metals market has a new protagonist.

Gold’s rally has slowed, while silver and platinum continue to rise steadily. On September 25, silver broke through $45/oz (hitting a new high since May 2011), and on September 26, platinum surpassed $1550/oz (a new high since April 2013). Compared to gold’s year-to-date increase of 41%, silver has risen by 55%, and platinum has significantly outperformed with a 71% increase. Investment insights note that this round of precious metal gains are indeed supported by monetary easing and risk aversion sentiment, but the reasons why silver and platinum are surpassing gold are worth a deeper exploration.

Why are silver and platinum surging unexpectedly?

From a technical perspective, this upward trend stems from a correction of undervaluation. The gold-silver ratio (the price ratio of gold to silver) and the gold-platinum ratio have been out of balance for a long time, prompting capital to reallocate valuations across different commodities. Simply put, investors have found silver and platinum to be undervalued relative to gold and are shifting their investments toward these two metals.

More critically, signals of supply tightness are emerging. The World Silver Survey predicts that the silver market will experience a deficit for the fifth consecutive year in 2025, with total supply continuously falling short of demand. Gareth Nicholson, head of investment at Nomura Securities, issued a warning—at the current consumption rate, known silver reserves could be exhausted by 2050.

The situation for platinum is similarly grim. The World Platinum Investment Council states that the platinum market will face a third consecutive year of deficit in 2025, with a shortfall of 30 tons. CEO Trevor Raymond pointed out that the platinum market has entered a structural shortage phase, with mine supply facing ongoing downward risks. Tight supply combined with stable demand forms the deep logic supporting prices.

How much more can prices rise in the future?

Institutions are optimistic about silver’s prospects. Mensur Pocinci, a commodities analyst at Swiss UBS, predicts silver will rise to $52–58. Nomura Securities emphasizes that, considering silver’s industrial and hedging attributes, it is more attractive than gold. BNP Paribas is the most aggressive, believing silver will first reach $50, then embark on a long upward journey toward $100.

Regarding platinum, Deutsche Bank is optimistic about its continued strength supported by both supply deficits and structural demand. If the gold-to-platinum ratio can recover to 2, platinum could surge to $1850.

This time, it is silver and platinum—once forgotten by the market—that have become the new drivers of the precious metals rally.