Gold knows no bounds. In our first issue of the Precious Metals Report 2024, we reported in April 2024 that gold had reached a new record high of US$ 2,200 per ounce, which was completely unthinkable a year ago. A good six months later, when this precious metals report was updated, the price of gold was almost 20% higher again at more than US$ 2,600 per ounce and now, towards the end of March 2025, we have not only reached the magical mark of US$ 3,000 per ounce but also exceeded it on a sustained basis. Gold currently seems to have no upper limit. All in all, the current situation regarding the gold price is a reflection of everything that is going in the wrong direction on the planet. Many private investors have now finally recognized this and are also investing in physical gold, primarily in ETFs backed by physical gold, which have recently become more important again.
The supply deficit for silver has once again widened massively! Demand is literally exploding, which is mainly due to the industrial use of silver. The photovoltaic sector is constantly setting new demand records - a situation that is set to continue in the coming years. At the same time, silver production continues to decline. As a result, the silver market has had a supply deficit for 6 years in a row, which has recently widened again. Higher prices above the USD 40 mark are necessary for a sustainable increase in production volumes. On March 14, 2025, the Comex not only delisted gold futures, but also an important silver future. The system is reaching its limits, and the silver price is likely to be let off the leash in the near future.
Platinum is used almost exclusively in catalytic converters for diesel burners, but their production has fallen sharply in recent years, which is why demand for platinum has declined and weighed heavily on the price of platinum. This led to some producers drastically reducing their production or closing entire mines. One future area of application is in the field of fuel cell drives, which several car manufacturers continue to have on their radar as a better alternative to purely electric vehicles.
Like platinum, palladium is also largely used in catalytic converters for combustion engines, but palladium is used in petrol vehicles. Here, too, production has been declining for years, particularly in South Africa. A balanced supply/demand situation is therefore to be expected in the coming years, which could quickly lead to a large-scale supply deficit, at least in Western countries, if conflicts with Russia continue.
Investors therefore have an excellent opportunity to enter the world of precious metals right now.
