Despite the spectacular diversification that the financial markets have witnessed since the emergence of Bitcoin and altcoins, and more recently, with EV and AI stocks, no other asset class has proved its durability, particularly under conditions of market duress, more than precious metals. Whether they’re traded on the spot or futures markets, or as part of more complex instruments like ETFs, metals provide not only diversification but, most importantly, a volatility and inflation hedge.
Metals, every trading portfolio’s must-havesVolatility has peaked across all core markets in 2025. Caught in the crosshairs of high inflation and antagonistic geopolitics as the conflict between Russia and Ukraine intensifies and China’s claims over Taiwan ensnarl Japan, the markets reacted. Precious metals were among the most sensitive asset classes to reflect this reaction.
Gold, the evergreen safe havenGold, the primary safe-haven asset in times of uncertainty, has yielded more than 50% YTD. Although trading below its October all-time high above $4,000, the shiny metal is still significantly above the levels reached in 1979, when the US was battered by a massive energy crisis and double-digit inflation, and those before the 2008 recession and the COVID-19 pandemic.
2025 has proved to be the best year for gold. Concurrently, prices of tech stocks, particularly AI shares, also peaked. In a chain reaction, cryptocurrencies reached unprecedented levels. Bitcoin alone soared more than 130% since it was added to ETFs in 2024.
The reason for this bewildering market behaviour deserves special attention, as investors don’t seem to seek the protection of safe-haven gold but rather a volatility and inflation hedge. On one hand, economic headwinds, including the boogeyman US tariffs and the longest government shutdown in the history of the United States, catapulted gold to levels never before seen. In fact, gold has outperformed tech stocks and digital assets for the first time in history.
On the other hand, central banks increased their gold purchases consistently. Over 1,000 tonnes of gold have flooded central banks’ vaults in the past three years in an attempt to move away from the US dollar as a reserve asset. Also, global investment banks, including Morgan Stanley, J.P. Morgan, and Goldman Sachs, have adjusted their gold price predictions upwards, with analysts suggesting that the rally may well continue through 2026. In this context, gold’s retreat might be attributed to profit-taking activities spurred by the record highs.
Silver, a critical asset to hold on toA similar scenario is followed by the silver market. Silver also hit an all-time high in October, when an ounce of the white metal was traded at $54.49 for the first time. Since then, silver has eased off its peak, yet still 60.69% above last year’s level.
More than a store of value and inflation hedge, silver is widely used in the manufacturing industry. Photovoltaic solar panels, electronic conductors, and electrical circuits are only a few of its industrial applications, leading to the price leap.
The volatility and uncertainty caused by President Trump’s tariffs and trade war added to the silver market’s skittish movements. At the beginning of 2025, the US silver reserves were growing substantially as market participants, including bullion banks, built up their stockpiles in anticipation of potential tariffs (which could apply in the future, considering silver’s vital importance as a commodity and appeal as a precious metal).
As New York’s silver stockpiles grew, London’s supply of physical metal dwindled, generating unprecedented demand, particularly from India. Consequently, silver lease rates topped 34% in October, throwing the market into historic backwardation, with spot prices soaring above futures prices.
For the time being, the fundamentals look positive, as supply-side factors continue to bolster demand for physical silver. Financial commentator Peter Schiff suggests that the precious metal could hit $200 under the right economic conditions.
Platinum, value beyond the glitter30 times rarer than gold, platinum is known for its exceptional physical and chemical properties, such as density, ductility, malleability, and stability, which make it indispensable for multiple industries, including automotive, healthcare, and plastic production.
About 90% of the global platinum production is concentrated in Russia’s Ural Mountains, Colombia, Canada’s Sudbury Basin, and South Africa, which accounts for 70 – 80% of the total annual production.
Its scarcity and broad industrial applicability are the key factors driving its price up. According to Morningstar, total platinum coin and bar investment surged by 47% YoY, propelled by rising demand in China. However, supply remains limited, slumping 2% YoY to 7,129 koz.
In November, platinum traded in the area of $1,550 an ounce, skidding a little as market sentiment regarding a Fed rate cut in December eased. The shift in the Fed’s policy stance cooled down a market that rallied more than 70% YTD, bolstered by tight supply and strong industrial demand. Prospects for 2026 remain positive as the platinum market is expected to move broadly in balance, with a forecast surplus of 20 koz.
Palladium, a strong diversifierTo novices, palladium may seem an obscure investment opportunity, overshadowed by platinum, gold, and silver. The reality couldn’t be more different. Belonging to the same group of metals as platinum, palladium is as critical in the industry as platinum. Thanks to its catalytic properties, it is critical in the production of green energy and catalytic converters.
Palladium faced some price volatility over the past month due to lower demand for physical metal in China due to a significant decline in passenger vehicles. More volatility is to be expected in the near future amid news flurry that the LME will stop managing the LBMA platinum and palladium prices as of mid-2026.
Meanwhile, China announced the launch of exclusive platinum and palladium futures and options contracts in a first-time ever move. Both derivatives have already been approved by the China Securities and Exchange Commission and will start trading on the Guangzhou exchange on 27 November (Futures) and 28 November (Options).
Currently, China’s demand for platinum covers 30% of the global demand. This makes the launch of one-of-a-kind derivatives critical to its economy, while removing the price control power from London and New York and reducing commercial dependence on these two hubs.
In a bid to reduce foreign exchange risks and increase its influence across both the domestic and global markets, China has also adjusted its settlement mechanisms to support both sponge and ingot forms of physical platinum and palladium. This creates immense opportunities for domestic Chinese traders and manufacturers who gain direct access to indispensable rare metals and tilts the geoeconomic balance of power in what could be a watershed moment for the global markets.
Finding the right brokerAs the balance of power is shifting, there are opportunities aplenty across the metal and commodity markets. Therefore, choosing a broker to facilitate not just market access, but also to equip traders with the much-needed knowledge and tools is vital. One such broker is T4Trade.
Placing traders first, T4Trade has always been committed to creating a secure and stable trading environment for clients. The broker provides seamless access to 300+ CFDs on gold, platinum, silver, palladium, and other popular underlying assets.
Its industry-standard MT4 and TradeCopier platforms are equipped with essential tools designed for both experienced and novice traders. To ensure traders are well-informed in real time, T4Trade offers real-time signals via its Trading Central integration and a wealth of market analysis and exclusive insights available on its website in the form of blog articles, market commentary, webinars, and podcasts.
Visit T4Trade’s website to explore its full range of CFD trading services and open an account to start trading
