Investors are looking for "new gold" and buying other precious metals. How to build a portfolio?

The rise in gold prices has led investors to turn their attention to silver, platinum and palladium in search of new assets to invest in. But analysts remind that unlike gold, which acts as a safe haven, most other metals are closely tied to the business cycle and can behave in a less stable manner. But analysts remind that unlike gold, which acts as a safe haven, most other metals are closely tied to the business cycle and can behave in a less stable manner;

Amid gold's robust appreciation, which in the first half of 2025 was the fastest in more than half a century, more investors are starting to invest in other precious metals - silver, platinum and palladium - with the expectation that they too will gain in value, writes Barron's. 

The largest precious metals ETFs have posted strong gains this year, with the SPDR Gold Shares exchange-traded fund with $101 billion in assets jumping 24%, the iShares Silver Trust with $17 billion under management up 23.3%, the Abrdn Physical Platinum Shares ETF up 48% and the Abrdn Physical Palladium Shares ETF up 20%.

Over the past three years, gold has shown an average annualized return of 24%. By comparison, the S&P 500 index had a return of 18.6%. Silver and platinum even outperformed gold in 2025. In the wake of this interest, Barron's warns that "not everything that glitters is as safe as gold". Each of these metals is governed by its own supply and demand factors.

"For many people, [gold's strength] is a signal that hard assets are back in vogue, which means that when prices rise, other precious metals should also rise in value," explains GraniteShares CEO Will Rind. His company manages two precious metals exchange-traded funds.

"Gold is very, very different from silver. We often hear that silver is sort of gold's little brother, and that makes my hair stand on end," Robert Minter, director of ETF investment strategies at Aberdeen Investments, told Barron's.  

While gold serves almost entirely as an alternative currency and a protective asset, the other metals tend to follow the economic cycle, i.e. their price depends on the ups and downs of the economy. While silver can also be seen as a savings and protective asset, 60% of its supply is used for industrial applications such as photovoltaic cells. growing demand for silver from the semiconductor industry for artificial intelligence has contributed to demand outstripping supply over the past four years. Since the beginning of the year, futures for the metal have jumped by 25%. 

Platinum, along with palladium, is mainly used in automotive catalytic converters and other industrial applications. Prices for these metals have remained in a narrow range over the past few years, despite supply shortages. The situation changed after US President Donald Trump announced new duties in April. As a result, platinum prices rose sharply as China and other countries began stockpiling it along with other strategic metals. Platinum futures have gained nearly 50% since the start of the year, while palladium contracts have gained about 20%.

Independent commodities analyst Sterling Smith advises novice investors to buy metals in a downturn. He suggests making a gold ETF the core of a metals portfolio and holding about 50% in it, as it is the most liquid market. He recommends adding investments in silver, platinum or palladium if the investor is optimistic about the economy and recommends allocating 15% in silver, 5% each in platinum and palladium, and the rest in gold mining funds, such as VanEck Gold Miners. The analyst warned that the total share of metals in the portfolio should not exceed 10%, as these are very volatile assets. 

Adrian Day, an investor in precious metals, advises market participants with a long-term horizon and a moderate risk appetite to combine physical metals and shares of mining companies in the ratio of 30% to 70%. In his opinion, at least half of investments in physical metals should be gold. He advises to take less silver, as it is more volatile than gold and usually grows in short spurts. Day suggests allocating the smallest part of the portfolio to platinum and palladium. He is particularly cautious about buying platinum because of its recently sharp rise and suggests investing in it only if the horizon is more than 10 years;

This article was AI-translated and verified by a human editor