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Money Metals News Alert
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December 22, 2025
– Gold, silver, platinum, and palladium are buidling upon last week's gains
and rallying again this morning -- in a big way.
Traders are paying particularly close
attention to gold -- with the yellow metal now poking above its all-time high
reached back in October. Gold has traded sideways for two months while silver and
the platinum group metals took the lead.
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A new breakout in gold
would make major headlines and lead to a new surge in retail interest in all
precious metals as well as mining stocks. Interestingly, the stocks have barely
outperformed the metals themselves this year.
At Money Metals, we're
seeing rising levels of first-time purchaser inflows -- and only modest selling
from long-time holders despite the significant capital gains they now enjoy.
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In reality, though, very few Americans
own a single ounce of gold or silver bullion -- having been failed by their
financial advisors who were taught to belittle gold and those who own it. Other
parts of the world, particularly Asia, are having most of the fun.
A quick reminder -- Money Metals' free
silver bonus is still valid through Wednesday. Purchase $750 or more in silver and
we'll throw in a quarter ounce buffalo silver round with our thanks.
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Gold : Silver Ratio (as of
Friday's closing prices) – 64.6 to
1
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What Drove the Strong Performance of Platinum
Group Metals in 2025?
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Gold and silver have hogged the
spotlight; however, the platinum group metals (PGMs) have had a breakout year as
well.
Platinum has surged by 92 percent in
2025, and palladium has gained 65 percent. Meanwhile, the price of rhodium (A
rarer PGM used in catalytic converters and in anticorrosion applications) surged
by 79 percent.
Six rare metals make
up the platinum group: platinum, palladium, rhodium, ruthenium, iridium, and
osmium. The metals share similar chemical properties, including high melting
points, strong corrosion resistance, and catalytic power.
PGM demand primarily flows from
industrial applications. Platinum and palladium are integral inputs in the
production of catalytic converters for both gasoline and diesel-powered engines.
They are also used in chemical and petroleum processing, electronics, and
specialized medical and industrial equipment. Platinum is popular in jewelry, and
both platinum and palladium garner physical investment demand.
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What is behind the meteoric
rise in the price of PGMs in 2025?
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Many of the supply and
demand dynamics that have driven silver higher are also at play in the PGM
markets. They are in structural deficits with very tight supplies.
For instance, the global
platinum market charted its third
straight significant structural deficit last year, and we should expect these
supply shortfalls to continue into the foreseeable future, according to the World
Platinum Investment Council (WPIC).
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Platinum demand outpaced supply by
995,000 ounces last year. That was 46 percent higher than forecast.
The WPIC expects a market deficit of
around 848,000 ounces in 2025.
Like silver and gold, the PGM markets
also experienced a displacement of metal due to tariff worries. They are also
getting a boost from looser
monetary policy and dollar
devaluation.
The 2025 PGM market played out in two
distinct phases.
PGMs began the year with range-bound
trading, continuing a multi-year trend. As Metals Focus described it, platinum,
palladium, and their cousins traded in ???narrow, orderly ranges.???
The 2025 PGM market played out in two
distinct phases.
PGMs began the year with range-bound
trading, continuing a multi-year trend. As Metals Focus described it, platinum,
palladium, and their cousins traded in ???narrow, orderly ranges.???
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???Persistent
deficits, thinning liquidity and muted secondary supply shaped
conditions.???
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During the first quarter, platinum???s
30-day annualized volatility hit the lowest level since 2018, reflecting the sense
of stability in the PGM market.
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However, underlying market
tightness already existed, and pressure was building.
Flooding in South Africa
disrupted mining operations and added to the supply pressure.
The country supplies more
than 70 percent of global primary platinum and over 80 percent of rhodium,
ruthenium, and iridium.
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Russia is another significant supplier
of PGMs. Its economy has been crippled by sanctions.
Supply disruptions were combined with
persistent weakness in secondary supply, driven by subdued recycling activity.
This supply pressure began to manifest
first in rising prices for two PGMs. Rhodium rose by 25 percent through Q1.25 to
$5,700. Ruthenium gained roughly 35 percent to $630, aided by improving chemical
and electronics demand and strong speculative interest in China.
However, despite tightening
fundamentals, the platinum and palladium markets remained relatively subdued, with
both gaining about 8 percent by the end of March.
Tariff worries set off the breakout
for the other PGMs.
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As was the case with
silver, large amounts of metal moved from overseas into CME vaults in New York in
an effort to get ahead of potential tariffs. Both platinum and palladium stocks in
CME warehouses surged.
As Metals Focus explained,
???Once it became clear that the tariffs would not apply to platinum and
palladium, and as the outlook for the auto sector weakened, metal began to leave
CME warehouses and inventories declined through April and May. While these shifts
did not initially drive price action, they framed the volatility that
followed.???
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Gold???s spring rally created further
tailwinds for the PGMs. A series of all-time highs incentivized some investment
rotation into platinum and palladium, particularly in China. Rising gold jewelry
prices also sparked renewed interest in platinum jewelry.
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This week's Market Update was
authored by Money Metals Contributing Writer Mike Maharrey.
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This copyrighted material may not
be republished without express permission. Offer only available through email
promotion. Offer does not apply to previous orders and may not be combined with
any other offer or program. Special shipping rates or other restrictions may apply
to international orders. The information presented here is for general educational
purposes only. Money Metals Exchange and its staff do not act as personal
investment advisors. Nor do we advocate the purchase or sale of any regulated
security listed on any exchange for any specific individual. While our track
record is excellent, investment markets have inherent risks and there can be no
assurance of future profits. You are responsible for your investment decisions,
and they should be made in consultation with your own advisors. By purchasing from
Money Metals, you understand our company is not responsible for any losses caused
by your investment decisions, nor do we have any claim to any market gains you may
enjoy. Money Metals Exchange is not a regulated trading ???exchange??? as defined by
the CFTC and the SEC.
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