The red-hot rally in precious metals has eased in recent weeks, but prices remain elevated after last year’s sharp run-up. That has left investors who missed the move weighing a familiar question: Is it too late to buy, or does some exposure still make sense?
Market watchers remain broadly positive on gold, silver, platinum and palladium over the long term. A weaker US dollar, supply constraints, geopolitical uncertainty, and steady investor and industrial demand are expected to support prices. Still, caution is rising in the near term after a powerful 2025 that pushed metals to their highest levels in decades.
“There are strategic reasons for holding these metals, but commodities are volatile and they will dip,” said Kathy Kriskey, head of alternatives ETF strategy at Invesco.
Different metals, different drivers
Investors should not expect the four metals to move in lockstep. Each has distinct supply and demand dynamics and plays a different role in portfolios. Gold has the broadest investor base and tends to be the most stable. Silver, platinum and palladium trade in smaller markets, making them more vulnerable to sharp price swings.
Gold’s rally began in 2022, driven by geopolitical risks stemming from the Russia–Ukraine war, rising inflation, central bank buying, and a weaker dollar. On a three-year annualised basis, gold has increased by approximately 38%.
Silver plays a dual role. It tracks gold at times as a monetary metal, but nearly 60% of demand comes from industrial uses, according to the Silver Institute. That exposure helped silver surge about 168% over the past 12 months.
Platinum and palladium are primarily industrial metals. Nearly half of platinum demand and about 85% of palladium demand come from vehicle catalysts. Over the past year, platinum has been up roughly 129%, while palladium has gained about 73%.
Short-term risks remain
Analysts warn that elevated prices could curb industrial demand. Kriskey noted that silver’s share of a solar panel’s cost has risen sharply, increasing the risk that manufacturers turn to substitutes if prices stay high. Slower global growth or recession could also pressure silver, platinum and palladium.
Looking ahead, most bank and commodity specialists expect metals to hold recent gains with modest upside. Average 2026 forecasts put gold around $4,400 to $4,800 an ounce, with optimistic scenarios higher. Estimates for platinum cluster between $2,100 and $2,450, and palladium between $1,600 and $1,725. Silver forecasts are the widest, roughly $50 to $70, underscoring volatility.
How advisers suggest investing
Financial advisers generally recommend limiting precious metals to 5% to 10% of a portfolio. For investors who benefited from last year’s rally, rebalancing may be prudent. Newcomers are often advised to use dollar-cost averaging rather than buying all at once.
Exposure can come through physical bullion, exchange-traded funds, or mining stocks. ETFs remain a popular option for investors seeking liquidity and ease of access without the storage and transaction costs tied to physical metals.
The takeaway from professionals is consistent: precious metals still have a role in diversified portfolios, but patience and discipline matter more than chasing last year’s gains.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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