Investors are concerned that the "untraditional" economic policies of the US President Donald Trump administration could turn the "de-dollarization" trend into a risk of depreciating the USD.
Silver, platinum and palladium all recorded impressive increases this year, amid rising geopolitical tensions and global economic instability. Mr Trump's efforts to reshape international trade have raised concerns.
Notably, despite recording the strongest increase of nearly half a century, up to 53.8%, gold is still the lowest performing metal in the group of four precious metals. platinum took the lead with an increase of 83.6%, silver increased by 70.4% and palladium increased by 60.5%.
According to J.P. Morgan, an investor involved in an unprecedented bet - looking to precious metals and intangible assets as a safe haven. This trend comes from concerns that changes in President Donald Trump's economic policies could impact the role of the US Federal Reserve (FED) and the USD in the global financial system.
Expert Taylor McKenna from Kopernik Global Investors Fund (Florida) predicted that gold prices will continue to increase, but the pace may slow down as high prices encourage new mining, increasing supply. We still like gold but not as much as we used to like, he told Reuters.
According to the European Central Bank (ECB), in 2024, gold surpassed the euro to become the world's second largest reserve asset, after the USD. IMF data shows that the share of gold in total global reserve assets reached a record of 24% in the second quarter, up from 23.3% in the previous quarter.
BCA Research Chief Strategist Marko Papic said: Investors should not sell US bonds or stocks for the sole benefit of Mr. Trumps actions. Instead, hold tangible assets - currently, palladium is our favorite choice.
HSBC expert James Steel said: "The increase in silver is closely linked to gold prices reaching a historical peak". He raised his forecast for the average silver price this year to 38.56 USD/ounce and in 2026 to 44.5 USD/ounce. Gold has a strong attraction for silver. When gold increases, cash flow often spreads to silver - especially from investors who missed out on the previous gold wave.
McKenna of Kopernik believes that platinum will break out even more as prices are still deeply discounted against gold - although the two metals are closely related. This difference could stimulate investment in new gold mining, thereby making platinum supply scarcer and giving prices a chance to increase further.
