Core Viewpoint - Platinum has experienced a significant price surge, with a monthly increase of over 28% in June and a year-to-date increase of approximately 60%, outperforming silver and gold [1][5]. Supply Factors - The price increase of platinum is attributed to multiple structural factors, particularly a reduction in supply due to mining cutbacks. South Africa, the largest platinum producer, has seen a substantial decrease in production due to adverse weather conditions [5]. - According to the World Platinum Investment Council (WPIC), the total global supply of platinum in the first quarter of 2025 is projected to be 45.3 tons, a 10% year-on-year decline, with mined supply down 13% to 33.7 tons [5]. Demand Factors - Industrial demand for platinum is on the rise, driven by the hydrogen energy sector and automotive production. Additionally, both consumer and investment demand for platinum have increased significantly [5]. - The WPIC reports a 9% year-on-year increase in demand for platinum in the jewelry sector in the first quarter of 2025, alongside a substantial rise in investment demand [5]. Market Dynamics - The significant price increase of platinum is influenced by supply-demand imbalances, a flight to safety by investors, and its potential as an alternative to gold. The current geopolitical tensions and inflation expectations have led investors to allocate funds to precious metals [7]. - Despite its financial attributes, platinum is unlikely to fully replace gold as a safe-haven asset due to differences in recognition, market size, and liquidity [7]. Future Outlook - If the global supply of platinum continues to be constrained and demand from sectors like hydrogen energy grows, there may be further price increases. However, uncertainties regarding the hydrogen sector and structural changes in the automotive industry could introduce demand volatility [7].

Group 1: Silver Market Dynamics - Silver prices have surged, breaking the $37 per ounce mark, reaching a 13-year high, with a year-to-date increase of nearly 30% [1][2] - The rise in silver is attributed to a delayed valuation correction, as the gold-silver ratio peaked at 106, significantly above the historical average of 40-80, indicating silver was undervalued [2] - Speculative capital has flowed into the silver market, with a notable increase in net long positions in COMEX silver futures, as institutions bet on the gold-silver ratio reverting to its mean [2] Group 2: Factors Supporting Silver Prices - Multiple factors are contributing to the rise in silver prices, including an improved international trade environment and expectations of interest rate cuts by the Federal Reserve, which have increased capital inflow into the silver market [2] - Weak employment and service sector PMI data have raised market expectations for a 70% chance of a rate cut in September, while the dollar index has fallen below 99, creating favorable conditions for silver pricing [2] - The industrial demand for silver, particularly from the photovoltaic and battery sectors, is also bolstering price increases [2] Group 3: Impact on the Silver Supply Chain - The surge in silver prices is impacting the supply chain, particularly for downstream photovoltaic companies, where silver constitutes over 10% of solar cell costs, leading to profit pressures and adjustments in procurement strategies [3] - Some small and medium enterprises are delaying expansion plans and exploring silver paste recycling and low-silver technologies due to rising costs [3] - Jewelry manufacturers are also affected, with retail prices lagging behind wholesale prices, resulting in a situation where small workshops are halting orders due to cost pressures [3] Group 4: Gold Market Dynamics - The gold market is experiencing volatility, driven by geopolitical factors and a shift in investment focus towards silver, which is perceived as undervalued [4] - Although gold retains its appeal as a safe-haven asset, its short-term performance is being constrained by the diversion of funds to silver, leading to reduced trading activity in traditional gold investment channels [4] - Gold ETFs have seen a slight reduction in holdings, but gold remains a stable asset in institutional portfolios, with a consistent allocation despite short-term trading fluctuations [4] Group 5: Future Outlook - In the short term, silver may face resistance at the 2011 high point, with potential for price corrections due to profit-taking [5] - However, the long-term outlook for silver remains positive, supported by global de-dollarization trends and increasing industrial demand, suggesting a sustained upward trajectory [5] - Gold's future performance will depend on Federal Reserve policies and geopolitical tensions, with potential for upward movement if interest rates are cut or if safe-haven demand increases [5] Group 6: Market Transformation - The current gold-silver divergence is reshaping market perceptions and strategies regarding precious metals, leading to a new balance and transformation within the precious metals market [6]