Central banks remain a key support in the gold market, while silver continues to attract investor inflows and platinum enters a potential consolidation phase, according to the latest update from precious metals specialist Heraeus.
In May 2025, central banks added a net 20 tons (t) of gold to their reserves, led by Kazakhstan, Türkiye, and Poland. Kitco reported that Heraeus analyst wrote this level was "close to but still below the 12-month average of 27 t," yet reflective of resilient sentiment.
Although it is slightly slowing, the sentiment remains overwhelmingly bullish. The survey revealed that 95% of central banks expect global gold holdings to reach a record high, and 43% plan to increase their reserves.
This buying continues a multi-year trend. Central banks have collectively acquired over 1,000 tons of gold annually for the past three years, well above the long-term average. This consistent accumulation has helped anchor gold prices, which have climbed from around $2,000 per ounce to $3,300 per ounce over the last 18 months, despite traditional correlations, such as those with U.S. 10-year Treasury yields, weakening.
"Ongoing central bank gold buying is expected to continue to underpin gold price performance through the remainder of 2025," Heraeus added.
Mergers And Acquisitions
Meanwhile, the gold industry has also seen activity in mergers and acquisitions. Equinox Gold (AMEX:EQX) acquired Calibre Mining in a $1.8 billion deal, creating the second-largest gold producer in Canada, while Royal Gold (NASDAQ:RGLD) acquired Sandstorm Gold in a $3.5 billion deal, on top of the $196 million cash deal for Horizon Copper Corp. A preference for all-share acquisitions indicates a focus on seeking synergies and preserving cash for capital expenditures.
Silver is also capturing investor interest. Heraeus highlighted that since early June, silver-backed ETFs have recorded net inflows of 990 t, with over 50% of year-to-date inflows occurring in this period. Most notably, the silver price stabilized above $36 per ounce— a level not seen in over a decade. Though high, silver still trails historic peaks when adjusted for inflation. The nominal record of nearly $50/oz in 1980 would equate to more than $180 per ounce in 2025 terms.
Heraeus notes that the gold-to-silver ratio currently stands at 90.3, significantly above the 10-year average of 80.2, which supports the view that silver has room to appreciate.
Finally, platinum may be entering a period of pause. After rallying for five consecutive weeks and reaching a high of $1,394 per ounce, Heraeus said price momentum may be slowing. They noted consolidation efforts in South Africa, where Impala Platinum is merging its operations with those of Royal Bafokeng Platinum to reduce costs.
Despite mining inflation, recent cost-saving efforts and rising basket prices may support margins in the near term; however, analysts caution that "a more prolonged period of consolidation is possible" following the recent surge.
Price Watch: abrdn Physical Precious Metals ETF (NYSE:GLTR) is up 26.19% year-to-date.
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