Precious Metals ETFs Go Vertical as Silver, Platinum Outpace Gold
Silver and platinum have raced ahead of gold this year, driving massive gains across precious-metals ETFs amid a wave of inflows.
Precious metals ETFs are having a historic year, with gold, silver, and platinum funds all posting massive gains as investment demand floods the space.
The iShares Silver Trust (SLV) extended its year-to-date gain to 142% as silver prices topped $70 an ounce for the first time on Tuesday. The SPDR Gold Shares (GLD) is up nearly 70% this year, with gold prices rallying to just shy of $4,500 an ounce, also a record. 
Meanwhile, the abrdn Physical Platinum Shares ETF (PPLT) has surged 144% as platinum prices climbed above $2,200, within striking distance of the $2,250 all-time high set in 2008.
Nearly $93 billion has poured into precious metals ETFs globally this year, with roughly $82 billion going into gold funds. Silver ETFs have taken in more than $10 billion, while platinum ETFs have attracted less than $200 million.
Rising prices and ETF inflows have fed off one another, reinforcing the broader rally.
The surge is reminiscent of the run-up in precious metals that culminated in 2011. That episode was also driven by ETF flows, as investors sought safety following the global financial crisis, the eurozone sovereign debt scare, and the downgrade of U.S. government debt by S&P.
This time, there is no crisis to point to. Instead, prices appear to be responding to a cocktail of concerns, including ballooning government debt, geopolitical tensions ranging from military conflicts to trade wars, persistently elevated inflation, and, more recently, questions surrounding the Federal Reserve’s independence.
While gold initially led the rally, silver and platinum have surged as investors chased what they viewed as “cheaper” exposure within the precious-metals complex. Despite being far more industrial in nature than gold, both metals have rallied sharply. Since Nov. 20, platinum is up 48%, compared with 39% for silver and just under 10% for gold.
Investors in precious metals ETFs such as GLD, SLV, and PPLT have been among the biggest beneficiaries of the rally.
