Commodities: Silver and platinum catch up

Gold remains in demand as a “safe haven”

Despite slight consolidation after reaching an all-time high at the end of April, the price of gold remains well above the US$3,000 mark. A key demand factor remains the sustained buying interest of central banks. “The World Gold Council reported solid purchases of 244 tons in the first quarter,” said Tahir. Demand for bars, coins, and exchange-traded products also remained robust – a clear sign of gold's role as a defensive investment.

For Carsten Fritsch of Commerzbank, one thing is certain: “Tariff fears, geopolitical tensions, and concerns about rising US government debt are repeatedly driving investors to the safe haven of gold.” In addition, current figures from Swiss customs and the Hong Kong statistics authority point to a revival in gold demand from China.

Gold/silver ratio above average

Fritsch sees one of the main reasons for the growing interest in the “clear undervaluation of silver relative to gold.” In April, the gold-to-silver ratio climbed to over 100 – a level last reached during the coronavirus crisis. Although the ratio has since fallen to 93, it remains above the five-year average of just over 80. “This discrepancy is clearly attracting more investors,” says Fritsch.

David Hartmann of Vontobel confirms this: over 90 percent of the silver products traded at Vontobel are call options – i.e., products with which investors bet on rising prices. Particularly in demand is a discount warrant (DE000VD2BZM5) that is about to expire and pays out the maximum amount if silver is trading above $35 on the final valuation date.

Platinum: Comeback announced

However, the top performer on the commodities market in recent weeks has been another metal: platinum. Since the correction low in April, the price has recovered by around 45 percent – a rise that has lifted the precious metal to a four-year high. Here, too, Fritsch sees relative valuation as the trigger: “At times, gold was three and a half times more expensive than platinum – a historically unique ratio that has apparently led to a revaluation.”

Investors are increasingly discovering platinum as an affordable alternative to gold. This is reflected, among other things, in rising demand from the jewelry industry and significant inflows into platinum ETCs. WisdomTree Physical Platinum (JE00B1VS2W53) even made it into the top 20 highest-turnover commodity ETCs on the German Stock Exchange in May.

By Thomas Koch, 12 June, 2025, © Deutsche Börse