Latest news with #platinum
Daily Mail
2 hours ago
- Business
- Daily Mail
Going for gold - should the 'new dollar' be your next investment?
The fast-mounting tensions in the Middle East are fuelling the ascent of gold. The price hit $3,389 an ounce this week – 30 per cent higher than at the start of the year, and 185 per cent above its level of a decade ago. The metal is being called 'the new dollar' since it is supplanting the US currency as the place to seek shelter in tough times. This new status suggests that maybe you should make some room for gold in your portfolio, particularly if you are apprehensive about the outlook for inflation. Meanwhile, even if you have already joined the gold rush of 2025, it is worth taking a look at the other precious metals whose values are being propelled by the view that gold is the safe haven of our era. The price of silver is up by 29 per cent since January, while platinum has soared by 39 per cent to $1,312. Silver is used in batteries and solar panels. The demand from platinum is coming from the jewellery industry, particularly in China. This metal is also needed for the catalytic converters on hybrid and petrol cars. Precious metals are having a moment. But will it turn into a long-term trend? Here's what you need to know. WHAT'S NEXT FOR THE GOLD PRICE? In the short-term, any worsening of the hostilities between Israel and Iran may spur further gold price rises. Goldman Sachs expects the price to increase to $3,700 by Christmas, and to $4,000 by the summer of 2026. Citigroup is almost a lone pessimist, forecasting a retreat to about $2,600 by Christmas next year. By contrast, the arch-optimists see bullion hitting $5,000 by the end of the decade. Earlier in the year, the fears that Donald Trump would impose tariffs on the import of gold to the US gave the price a fillip. This did not materialise. But a gold spending spree at central banks is now fuelling the metal's ascent. These institutions, whose key responsibility is to ensure the financial stability of their nation's, are buying 80 metric tonnes of gold a month which is worth about $8.5billion. US dollars still make up about 46 per cent of these banks' reserves, but gold accounts for about 20 per cent, having overtaken the euro, as data released this month reveals. Secrecy covers which central banks are buying. But it is clear that some nations, such as China, are playing catch up. China's holdings may be at the highest ever, but just 10 per cent of its reserves are in gold, by contrast with France, German, Italy and the US where the share is closer to 70 per cent. In the UK, the percentage is under 20 per cent, following the sale by then Chancellor Gordon Brown in 1999 of about half of the stockpile stashed in the Bank of England. At the time, the price was about $298. Through its gold purchases, China is seeking to bolster the credibility of its currency, the yuan. But, like other nations, it is engaged in 'de-dollarisation' that is lessening dependence on the US currency. In some emerging market nations, this shift is being driven by anti-American sentiment. But it is also a policy prompted by pragmatism, with fears that there could be more 'weaponisation' of the dollar. US sanctions imposed on Russia following the invasion of Ukraine and its exclusion from the Swift international payment system rendered that country's dollar reserves worthless. Central banks view moving more into gold as way to swerve such a fate. They are also alarmed by the size of US debts. But this anxiety has yet to reach a pitch that would precipitate a frenzied investment in gold. James Luke of asset manager Schroders says: 'The fiscal frog continues to boil slowly, for now.' This is a reference to the adage that people tend to wake up too late to the progressively increasing risks of a situation in the same way that a hapless frog seems not to be conscious that the temperature of water is becoming ever hotter. Even if there is no sudden upward surge, central banks seem set to keep going for gold, limiting the amount available for trading and so putting a floor under price falls. Lina Thomas of investment bank Goldman Sachs says: 'The long-run bull story for gold is that central banks are buying large amounts of it. We expect that to continue for at least another three years.' SHOULD YOU GO FOR GOLD? Despite the predictions that the gold price will remain strong, some investors will never get into the metal because it does not provide an income – and because they regard it as fundamentally uninteresting. As the legendary US investor Warren Buffett has said, gold 'doesn't do anything but sit there and look at you'. Even if you are unconcerned by the lack of a yield and also of excitement, it would still be unwise to commit more than 5pc of your portfolio to the metal. You also need to ponder your strategy. If you are drawn to the look of gold, with its beguiling lustre, you may be interested in acquiring a bar, a coin or an ingot. A one kilogramme gold bar will set you back about £82,000 at Sharps Pixley, the bullion dealer in St James's Street, London, although smaller, much less expensive versions are available. The Royal Mint has also options for most budgets. Its website is a mine of information on every aspect of gold. But do not overlook the practical issues such as storage – in a secure vault. Holding physical gold through low-cost exchange traded commodity (ETC) fund is simpler, if more prosaic. These funds track the price of the metal by owning bullion, which is safely stashed in vaults. The investor platform best-buy options include iShares Physical Gold, which opts for responsibly-sourced gold. This column highlighted this fund in February, when the metal's price was about $2,900, and it became my choice for a first foray into gold. For me, gold jewellery is an adornment, rather than an investment. Funds that hold gold mining shares are a more complex proposition. The profits of these companies gain an extra boost from upward moves in the gold price since their overheads are fixed. But they face other challenges, like the cost of borrowing and possible political intervention. For example, the authorities in Mali have taken control of Barrick Gold's mine in that country following a dispute. The mine accounts for 14 per cent of the output of Barrick, a Canadian group. If you are prepared for such eventualities, the gold mining company funds that appear on the platforms' best buy lists include BlackRock World Mining and Ninety One Global Gold. Ninety One Global Gold has stakes in the big mining names like Newmont, Northern Star, Alamos Gold and AngloGold Ashanti. The $64.81billion Colorado-based Newmont is the world's largest name in its field. As always, it is wise to check whether you already have exposure to gold through funds and trusts that aim for capital protection. Personal Assets, Ruffer and Troy Trojan all have a slug of gold. If you are ready for an adventure in the world of metals, Ben Yearsley of Fairview Investing suggests Amati Strategic Metals which invests in gold, silver platinum, but also copper, manganese and rare earth metals. The fund's top holding is Fresnillo, the Mexican gold and silver mining group whose shares have jumped by 117 per cent since January. This rise may not continue. But it is a sign that this is a sector which you cannot afford to ignore.
Khaleej Times
a day ago
- Business
- Khaleej Times
Is platinum on its way to become the next gold in investing?
In 2025, platinum has emerged as a surprising frontrunner in the world of precious metals, capturing the attention of investors who once focused solely on gold. Platinum rose one per cent to $1,336.08 on Thursday. Earlier in the session, the metal hit $1,348.72, its highest level since September 2014, Reuters reported. 'Platinum lease rates are high, so the refineries are not looking to manufacture because the cost is much higher. So demand is coming, but there's not enough supply... above ground inventory is tight,' said Brian Lan, managing director at GoldSilver Central, Singapore. Platinum lease rates refer to the cost of borrowing platinum for a set period of time. High lease rates can indicate a shortage of platinum in the market. With a remarkable surge of nearly 49 per cent this year, platinum has outpaced both gold and silver, prompting many to ask: could platinum be the next gold in terms of capital gains? The answer lies in a combination of industrial demand, supply constraints, and a shifting global energy landscape. Platinum isn't just a precious metal — it's a workhorse in the industrial world. It plays a critical role in catalytic converters for vehicles, hydrogen fuel cells, and other clean energy technologies. As the world accelerates toward decarbonisation, platinum's relevance has only grown. At the same time, supply has tightened. Mining output dropped by 13 per cent in the first quarter of 2025, contributing to a projected market deficit of nearly one million ounces. According to the Platinum Quarterly, the platinum market is expected to record a deficit of 966,000 ounces this year, which follows a 992,000 ounces deficit in 2024. The forecast platinum market deficit for 2025 has been increased from the 848 koz reported in March primarily due to upward revisions in global platinum demand. This imbalance between supply and demand has helped drive prices upward. Despite this rally, platinum still trades at just over half of its 2008 all-time high, making it appear undervalued—especially when compared to gold, which is currently at record levels. This relative undervaluation, combined with its industrial utility, has made platinum an increasingly attractive option for investors looking to diversify their portfolios. Gold, long considered the ultimate safe haven, remains a strong performer with gains of around 30 per cent this year. But platinum's dual identity—as both an industrial and investment metal—offers a different kind of opportunity. It's more volatile, yes, but also potentially more rewarding. 'A combination of industrial demand, supply constraints, clean energy applications and pricing make platinum the most attractive precious metal in 2025,' Kent Thune, analyst at wrote. In short, while gold continues to shine, platinum is beginning to sparkle in its own right. For investors willing to embrace a bit more risk in exchange for higher potential returns, platinum may very well be the metal to watch.
Zawya
2 days ago
- Business
- Zawya
Gold prices holds steady, platinum scales over 10-year high
Gold prices held steady as investors kept an eye on the conflict between Israel and Iran, while platinum scaled its highest level since September 2014 on speculative buying. Spot gold was steady at $3,369.79 an ounce at 0955 GMT. U.S. gold futures fell 0.6% to $3,387.30. "We're not expecting that gold prices will fall back to 3,000 because there are a lot of uncertainties," said ANZ Commodity Strategist Soni Kumari, pointing to whether the U.S. decides to become directly involved in the conflict. Iranian missiles struck an Israeli hospital on Thursday while Israel hit targets across Iran as President Donald Trump kept the world guessing about whether the U.S. would join Israel in air strikes seeking to destroy Tehran's nuclear facilities. Meanwhile, the Fed held interest rates steady on Wednesday and policymakers still forecast cutting rates by half-a-percentage point this year, but slowed their overall outlook for rate cuts in response to a more challenging economic outlook. However, Fed Chair Jerome Powell cautioned against putting too much weight on this outlook, warning of "meaningful" inflation ahead as higher import tariffs loom. Gold is considered a safe-haven asset during times of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment. In other metals, platinum lost 2.5% to $1,288.67, but hit its highest level since September 2014 earlier in the session. Platinum prices are supported by rising Chinese imports, ongoing supply concerns, high lease rates and increased investor interest as high gold prices push consumers toward cheaper alternatives. The fundamentals in the platinum market have not changed, whenever a key technical level such as the 1,000 mark is broken, investors and the speculators will start buying, Kumari said. Palladium lost 1% to $1,038.18, while silver fell 1.1% to $36.32 per ounce. (Reporting by Anushree Mukherjee in Bengaluru;Editing by Elaine Hardcastle)
Gulf Business
2 days ago
- Business
- Gulf Business
Iran-Israel tensions: Gold surges, Platinum hits 10-year high
Image credit: Getty Images Gold prices gained on Thursday, June 19, as the Iran-Israel tension entered its seventh day, while platinum rose to a more than 10-year high on expectations of a supply shortfall. Spot gold was up 0.1 per cent at $3,371.15 an ounce, as of 0526 GMT. US gold futures fell 0.6 per cent to $3,388.60. Read- 'Gold has made a modest bounce as we await the next steps in the Israel-Iran conflict. If the US does decide to get directly involved, this could raise the geopolitical stakes,' KCM Trade Chief Market Analyst Tim Waterer said. Gold edges up amid heightened geopolitical tensions Gold is often used as a safe store of value during times of geopolitical and financial uncertainty. Meanwhile, the US Federal Reserve held interest rates steady on Wednesday. Fed policymakers still forecast slashing rates by half-a-percentage point this year, but they have slowed the pace of future cuts. However, Fed Chair Jerome Powell cautioned against putting too much weight on this outlook, warning of 'meaningful' inflation ahead as higher import tariffs loom. Elsewhere, platinum rose 1 per cent to $1,336.08. Earlier in the session, the metal hit $1,348.72, its highest level since September 2014. Platinum surges to 10-year high on supply concerns 'Platinum lease rates are high, so the refineries are not looking to manufacture because the cost is much higher. So demand is coming, but there's not enough supply… above ground inventory is tight,' said Brian Lan, managing director at GoldSilver Central, Singapore. Platinum lease rates refer to the cost of borrowing platinum for a set period of time. High lease rates can indicate a shortage of platinum in the market.
Bloomberg
2 days ago
- Business
- Bloomberg
Platinum Rallies to the Highest Since 2014 Amid Market Tightness
Platinum extended a powerful rally to hit the highest level in more than a decade, with gains underpinned by a spike in demand and expectations for a market deficit. Spot prices surged by more than 2% to $1,350.17 an ounce, the highest level since September 2014. In a sign of near-term tightness, metal for immediate delivery has been trading at a premium to futures.
