Full article posted on www.cnn.com
Investors Flock to Gold, Silver, and Platinum Amid Market Turbulence
Wall Street traders seeking substantial returns have shifted their attention toward the unusual yet lucrative market of precious metals. Prices of gold, silver, and platinum have surged dramatically as investors seek stability amidst growing global trade uncertainty driven largely by tariff disputes.
Gold: The Leading Safe Haven Investment
Gold has traditionally served as a refuge during economic volatility, and 2024 has reinforced its appeal. After achieving a remarkable 27% growth in 2023, gold prices have climbed an additional 27.5% this year. Investors increasingly view gold as a resilient investment and a hedge against inflation.
In April, spot gold prices briefly touched a record high of $3,500 per troy ounce. Sustained demand, particularly from central banks in India and China adding gold reserves, has further buoyed the metal. Additionally, a weaker U.S. dollar—down nearly 9% this year—has enhanced gold’s appeal to foreign investors.
Peter A. Grant of Zaner Metals noted, “Gold continues to consolidate above $3,300, underpinned by persistent geopolitical risks, trade uncertainty, and a soft dollar
Silver: An Attractive Alternative to Gold
Silver has rapidly emerged as another compelling precious metal investment, surging by 24% this year, driven both by investor demand and its robust industrial applications.
Spot silver prices surpassed $36 per troy ounce, marking the highest level since 2012. Michael DiRienzo, CEO of the Silver Institute, attributes this surge to heightened economic uncertainty and growing industrial usage in data centers, solar panels, and electronics.
“Silver offers an attractive entry point for investors seeking alternatives to high-priced gold,” analysts at commodities research firm CPM Group explained. The dual demand—industrial and investment—creates substantial potential for silver to reach record highs.
Platinum: The Emerging Precious Metal Star
Platinum, traditionally overshadowed by gold and silver, has recorded an impressive 36% price surge this year, rebounding significantly from a nearly 10% drop in 2024. Prices recently exceeded $1,200 per troy ounce, the highest since 2021.
Demand-supply dynamics are fueling platinum’s rise, with the World Platinum Investment Council projecting a continued supply deficit. This shortfall, driven by automotive and jewelry sector demand—particularly from China—is diminishing existing inventories, boosting prices significantly.
Jonathan Krinsky, market technician at BTIG, noted, “We are starting to see laggards like platinum emerge to catch up with gold’s performance.”
Why Precious Metals Are Outperforming Traditional Assets
The push toward precious metals is partly driven by weaker performance in traditional assets. The S&P 500 has shown modest gains this year after substantial growth in previous years. Simultaneously, bond markets have exhibited volatility, and the weakening U.S. dollar has shifted investor preferences towards tangible, less politically vulnerable assets like precious metals.
Ole Hansen of Saxo Bank emphasized that precious metals are politically neutral assets free from counterparty risk. “These commodities increasingly look like a rational hedge against political and financial instability,” he stated.
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