Silver and Platinum Soar as Industrial Demand and Tariff Fears Lift Metals

Silver and platinum are staging major rallies, surging to multi-year highs as investors seek refuge in precious metals—and as industrial demand adds fuel to the fire.

Silver extended gains to a 13-year high, while platinum reached its highest level since early 2022, driven by strong physical demand from India and China, and a broader shift into metals used in key industries.

The rally follows a broader boom in gold, which is up 28% year-to-date thanks to escalating U.S.-led tariffs and sustained central bank buying. But now silver and platinum are catching up—posting year-to-date gains of 25% and 28%, respectively.

Unlike gold, which is primarily a haven asset, silver and platinum are also tied to industrial cycles. Silver is critical for photovoltaic solar panels, while platinum is used in catalytic converters and laboratory equipment. Both markets are now heading for a supply deficit after years of demand outstripping supply.

Technical momentum is adding to the surge. According to analysts, holding above $35 an ounce is a “critical inflection point” for silver. If it sustains this level, retail investor interest could jump. Meanwhile, platinum exchange-traded fund (ETF) holdings have already risen more than 3% since mid-May, and sticky lease rates signal tightening supply.

ETF demand is building across the board. Silver-backed ETFs are up 8% since February, while platinum ETFs have started gaining traction again after a long lull. Palladium also joined the party, climbing as much as 2% on Friday.

As of early London trading, spot silver rose 1.6% to $36.22 an ounce, platinum gained 2.1%, and gold edged 0.4% higher. The metals also got a tailwind from bets that the Fed may cut rates twice this year after an unexpected rise in U.S. unemployment claims—lower rates tend to benefit non-yielding assets like gold and its cheaper cousins.

​Bottom line: The metals rally is broadening beyond gold. With industrial demand strong, supply deficits looming, and macro uncertainty lingering, silver and platinum could keep shining well into the second half of the year.