Gold, silver, platinum and palladium: What S’pore investors should know about these precious metals

Singapore investors should be aware of the fluctuations in precious metals, such as gold, silver, platinum, and palladium, in 2026. These metals often act as alternative assets, but their investment traits can vary greatly. This article explores the outlook for each metal based on current market conditions. Gold prices have been erratic in the past year, influenced by inflation concerns and expectations of a more aggressive Federal Reserve rate policy.

The precious metal reached a record high of US$5,589.38 an ounce in January before plummeting below US$4,000 in July. However, it has since rebounded, peaking at US$4,400 on August 12 after a weaker-than-anticipated US jobs report reduced expectations of a Federal Reserve rate increase in September. Analysts predict that both gold and silver prices will rise again, citing factors like de-globalisation, de-dollarisation, mounting government debt, and geopolitical tensions as long-term trends.

Gold's upside potential is bolstered by sustained central bank buying and a resurgence in investor demand. Recent inflows into gold ETFs also indicate a growing investor appetite, while a weaker US dollar has added support to the bullish gold thesis. Silver, on the other hand, experienced a significant drop in value as shifting expectations for US interest rates eroded its appeal as a safe-haven asset.

However, it has since recovered to around US$65 an ounce. Unlike gold, silver is more susceptible to economic cycles, with industrial demand accounting for around 45% of its demand. OCBC Bank's wealth advisory head suggests that gold remains the primary hedge against market volatility, while silver exhibits more pronounced price swings due to its dual investment and industrial demand factors.

Platinum and palladium, both part of the platinum group metals, have experienced a surge in value following gold's rally. However, their prices are heavily influenced by industrial demand and limited supply, particularly in vehicle emissions-control systems and industrial processes. Platinum, which saw a record high of US$2,860 an ounce in January, has since slumped by about 39% to around US$1,750.

Palladium has also declined by more than 30% from levels above US$2,000 an ounce at the beginning of 2026 to approximately US$1,334. Although both metals are concentrated in production, with Russia and South Africa accounting for the majority, their long-term prospects differ significantly. As the global automotive industry moves towards electric vehicles, palladium's demand will dwindle, while platinum benefits from the rising popularity of hydrogen fuel cells.

OCBC Bank anticipates platinum to surpass US$2,000 an ounce by the first half of 2027, while palladium may exceed US$1,500 in the same period. Singapore residents can access precious metals through physical bullion, ETFs, or mining-related stocks. For instance, UOB provides physical gold and silver, while OCBC enables customers to purchase fractional amounts of digital gold, silver, platinum, and palladium via its Precious Metals Account.

Additionally, the LionGlobal Singapore Physical Gold ETF, listed on the Singapore Exchange (SGX) in March, caters to investors seeking exposure to precious metals. Physical platinum and palladium can be acquired from bullion dealers, albeit at steep premiums of around 30% an ounce for palladium and approximately 18% for platinum.

Alternatively, US-listed ETFs and mining stocks linked to these metals are available for investment in Singapore.