Investors are turning to precious metals as a safe haven amid trade war uncertainty and economic turmoil. Gold, silver, and platinum prices have surged this year, with gold up 27.5%, silver 24% higher, and platinum 36% higher than last year’s levels.
The US stock market has underperformed, rising less than 3% so far this year, while the bond market is also volatile due to tariff turmoil. Investors are diversifying away from traditional financial instruments towards tangible assets like gold, silver, and platinum.
Central banks, including in India and China, have been buying bullion to add to their reserves, driving up prices. The weakening US dollar has also contributed to the surge in precious metals. As the global economy faces uncertainty, investors are seeking alternative investments with lower counterparty risk.
Silver is widely used for industrial purposes and its demand has surged due to heightened economic uncertainty. Investors can invest in silver or gold through bars, coins, ETFs, such as the iShares Silver Trust ETF and SPDR Gold Trust ETF.
Platinum has gained momentum, driven by demand exceeding supply and a surge in Chinese interest in jewelry and bars. Jewelers are diversifying into platinum due to rising gold prices, changing historical patterns.
As trade war uncertainty persists, investors will continue to seek safe havens in precious metals. The macroeconomic backdrop is supportive of precious metals, with analysts predicting continued growth in the sector.
Source: https://edition.cnn.com/2025/06/12/investing/us-stock-market-gold-bitcoin-silver