Summary of Metals Weekly Report Industry Overview - The report focuses on the precious metals market, specifically silver and platinum, highlighting recent price movements and market dynamics [2][4][41]. Key Points on Silver - Silver has experienced a nearly 130% rally year-to-date, raising concerns about potential demand destruction, particularly in the solar sector [2][11]. - Solar applications account for approximately 200 million ounces (moz) of silver demand, representing 30% of industrial demand and 18% of total silver demand [11][23]. - The surge in silver prices has increased its share of the total module selling price to nearly 20%, a significant rise from levels typically below 5% prior to 2024 [11][21]. - A potential acceleration in thrifting technologies, such as silver-coated copper paste and zero busbar technology, could threaten 50-60 moz of silver demand in the coming years [2][11]. - Current tight physical markets, influenced by Section 232 tariff uncertainties, may lead to silver outperformance in the short term, despite long-term demand destruction risks [2][41]. Key Points on Platinum - Platinum prices have surged above $1,900/oz, primarily driven by increased futures trading activity on the Guangzhou Futures Exchange (GFEX) [4][41]. - The GFEX has seen a significant rise in trading volume, with daily volumes reaching nearly 5 moz and total open interest exceeding 1 moz [4]. - The EU's decision to scrap its 2035 combustion engine ban has further supported platinum fundamentals [4]. - Technical analysis suggests that platinum could reach resistance levels between $2,100 and $2,300 in the near term, although recent announcements limiting open positions may impact future trading [4][43]. Additional Insights - The gold/silver ratio has fallen into a confluence of support levels in the low- to mid-60s, indicating potential for further movement in the early weeks of the next year [2][52]. - The report emphasizes the importance of monitoring market volatility and potential shifts in demand dynamics as high silver prices could lead to a sharper unwind in silver's recent outperformance against gold [2][41]. Conclusion - The precious metals market is currently characterized by significant volatility and potential shifts in demand, particularly for silver in the solar sector and platinum driven by trading activity in China. The interplay between high prices and technological advancements in solar applications poses both risks and opportunities for investors in these metals [2][4][41].