Prices rise and rise Record hunt for precious metals - is it worth getting in now?
Gold, silver, platinum: prices are rising rapidly and investors are wondering whether it is still worth getting in. What experts say about the opportunities and risks of the current high.
18.10.2025, 12:03
dpa
The financial markets are currently dominated by a rapid record run in precious metal prices. For one week, the price of gold jumped from one record high to the next. In general, precious metal prices have been soaring since the beginning of September.
During this time, gold and silver have increased in value by around a third. Similarly rapid price increases can also be seen in platinum. What is unusual for experts is the weeks-long steep rise in prices without any significant countermovement. And many investors are asking themselves the question: Is it worth getting in now?
Gold
When investors are looking for safe havens, gold is at the top of their shopping lists. Demand is being driven by the uncertainty of many investors due to the escalating tariff dispute between the USA and China and geopolitical risks, including the Russian war of aggression against Ukraine.
Concerns about some regional banks in the USA have also recently emerged on the market and are supporting demand. The record hunt has driven the price up to 4379 dollars per troy ounce - around 31.1 grams - at times. Added to this is the prospect of a further fall in interest rates in the USA.
The Fed is now expected to cut interest rates twice more this year. As gold does not yield any market interest, falling interest rates in the largest economy are boosting demand for the yellow precious metal, especially as the falling US dollar is also making gold more attractive to many investors outside the dollar zone.
Other price drivers are strong demand for exchange-traded securities (ETFs) backed by gold and gold purchases by central banks that want to make their reserves less dependent on the US dollar.
Silver
Similar to the gold price, the price of silver has only been moving in one direction for weeks: steeply upwards. However, while the price of gold has risen comparatively slowly over a long period of time, the price of silver has seen several extremely sharp jumps in recent decades. A rapid rise was quickly followed by a rapid fall.
In 1980, for example, the price of silver shot up as sharply as it has in recent weeks. At that time, a speculative bubble had already pushed the price of a silver ounce above the USD 50 mark. It was only with the most recent surge that the then record level was broken, when the price of silver recently rose to over 54 dollars.
Silver is also used in industry because, among other things, it has good electrical conductivity. "Silver benefits from its special position as a precious metal and industrial metal," according to an analysis by DWS.
The fund company's experts recognize a shortage in the supply of silver for applications such as photovoltaics and wind turbines. According to the DWS experts, private investors are also reinforcing the trend: "The demand for physical silver is increasing; some mints are reporting record sales," the analysis states.
Platinum
Platinum has also increased significantly in price since September, with the price recently rising to 1654 dollars per ounce. However, this is well below the record high of 2300 dollars reached in 2008.
However, the most recent rise in the price of platinum is one of the strongest among precious metals. "With an annual increase of 86 percent, platinum remains at the top of the list of metals," according to an analysis by the Metzler bank.
What's next for prices?
The price development of precious metals has not shown any major corrections in recent trading days, which is unusual. Commodities analyst Carsten Fritsch from the German Commerzbank observes that "price declines are seen as a buying opportunity by market participants".
Legal notice
This article is for information purposes only and does not constitute financial advice. The analyses and assessments contained herein are based on thorough research, but are no substitute for an individual assessment by experts. The development of the commodities, precious metals and financial markets is influenced by numerous, sometimes unpredictable factors. Investments in precious metals, equities, cryptocurrencies and other financial products are associated with risks, including a possible loss of capital.
New record highs are therefore to be expected. However, expert Fritsch also made it clear that a continuation of the highs would also increase the risk of a stronger setback. However, the reasons for the soaring prices are unlikely to change much for the time being.
"Expectations of interest rate cuts, political uncertainty in the US and ongoing geopolitical tensions suggest that the upward trend will remain intact for the time being," said precious metals trader Alexander Zumpfe from Heraeus. In his view, gold is likely to remain "the preferred refuge - with further upward potential".
