Metals Went from Record Highs to a Historic Selloff. What’s Next for Silver, Platinum, Palladium?

For better or for worse, everyone’s talking about silver.

Believe it or not, the precious metal was the best-performing asset class last year, before face-planting at the start of 2026. After a record-breaking rally that took the price of silver over $100 an ounce for the first time in history, it has plunged by roughly a third over the past week and a half. Gold has led the upside for the past four years, but last year silver, platinum and palladium took off and outpaced the yellow metal. Market watchers say investors piled into those metals, spurred by geopolitics, US dollar weakness, cheap relative value compared with gold and a positive supply and demand outlook — especially for silver and platinum.

With no end in sight to geopolitical worries, precious metals have proved their mettle, but will the selloff continue or are there other opportunities beyond gold and silver?

Demand and Supply

Even before last year’s rally, silver, platinum and palladium had a good supply-and-demand story, said Robert Minter, director of investment strategy at Aberdeen Investments. Silver and platinum were in supply deficits for five and three years, respectively, which occurs when demand outstrips annual mine production.

A dearth of supply makes the current cycle different from the last commodities cycle from 2000 to 2015, which was driven by China’s growth and demand for raw materials. Minter points to data from S&P Global which show the average mine takes more than 15 years to develop, from discovery to production. Commodities cycles can last years, with shorter cycles typically taking about five years, according to CIBC Woody Gundy, while “supercycles” can stretch out 15 years or more.

“Cycles are very long in commodities, and they’re justified,” Minter said. “It’s hard for high prices to cause additional supply, because it takes so long. And so that’s what we’re seeing now.” Even increasing production from existing mines can be difficult. There are a few pure silver mines, but much of the mine production for silver, platinum and palladium comes as a byproduct of base metals like copper or lead. Base metals miners are unlikely to focus on increasing precious metals output at the expense of their main ore bodies.

Additionally, platinum and palladium deposits are concentrated mostly in Russia, a geopolitical issue, and South Africa, where aging infrastructure limits output.

Getting Heavy With Metals

Whenever an asset has a big run-up, financial advisors often get client questions about it, and precious metals are no different. In the short term, metals have seen a pullback after such strong gains. The long-term outlook for precious metals is shiny, but knowing the differences between gold, silver, platinum and palladium and the roles they play in portfolios is critical.

When looking at the four precious metals, gold stands out as a safe-haven asset that can act as a hedge against economic uncertainty, which is why it was the first to rally. Silver is a chameleon. Sometimes called “poor man’s gold,” silver has some monetary aspects and can follow gold during geopolitical uncertainty, like now, but usually its price is determined by industrial needs. Used in electronics, solar panels and electrical grid infrastructure, silver is now is seeing higher demand in artificial intelligence semiconductor chips as well. Platinum has some jewelry and investment demand, but much of it is used in industrial applications. Platinum and palladium are key components of catalytic converters.

Expect more volatility from silver, platinum and palladium than gold. The markets for those metals are smaller and prone to greater price swings, plus they’re likely to follow the economic cycle, said David Rosenstrock, director of financial planning and investments at Wharton Wealth Planning.

Digging on Silver, Platinum and Palladium

Given the sharp gains, particularly in silver, Minter would be cautious getting in now, even after last week’s dropoff. “I think a reasonable person, after a 150% run (in silver), would say this is maybe not the place to add,” he said.

Financial advisors who incorporate precious metals into their client’s portfolios say gold should be the foundation, comprising at least 50% of the allocation, with silver, platinum and palladium added in smaller amounts, depending on risk tolerance. Most advisors recommend limiting the total precious metal position to about 5% of the entire portfolio and using dollar-cost averaging.

Jonathan Harrison, wealth advisor at Sound Stewardship, said precious metals appeal to his more conservative clients who are looking for a balanced approach, rather than more growth-oriented clients. “Our 60/40 mix tends to have the precious metals in it way more than 80/20 or more aggressive [portfolios],” he said.

Gold positions offer stability, while more volatile silver, platinum and palladium capture higher returns, said Gabriel Shahin, CEO of Falcon Wealth Partners. He uses precious metals as an uncorrelated asset for clients with $5 million or more as a hedge against market risk, currency risks and inflation. His strategic allocation ranges from 1% to 5%, and typically puts 50% of that to gold, 30% to silver and 10% each to platinum and palladium.

Keep It Balanced. Rebalancing is always important, advisors said, and the volatility in silver, platinum and palladium requires advisors to keep a closer eye on the portfolio than with other assets. In a 5% allocation, some advisors will let the position rise to 7% or 8% before selling to take profits, or buy dips to right-size the holding if prices fall. “Rebalancing and maintaining discipline with these is going to be important because of the role it plays,” Rosenstrock said.

Most advisors use exchange-traded funds for their precious metals positions. Matthew McKay, portfolio manager at Briaud Financial Advisors, has some clients who choose physical metals for the “peace of mind” it gives them and can custody the metals. However, he said many advisors choose not to because it opens them to audit risks. “One hundred percent, it’s a compliance risk. They have to understand the nuances of it,” he said.

It’s All Mine. Gold mining stocks are another way to invest in precious metals. However, it’s trickier for the other metals as there are fewer pure-play publicly traded silver miners. Listed producers of platinum and palladium, meanwhile, have most of their production in South Africa, which often struggles with energy costs and other issues.

Thomas Kertsos, portfolio manager of First Eagle Gold Fund, which invests both in gold and silver bullion and mining companies, said all things being equal, owning bullion is preferable to mining stocks. Miners are subject to many risks, including engineering, geological, geopolitical and financial challenges, and the industry can be hard for non-experts to understand. “It is a very tough business,” he said.