Investor demand for precious metals has surged to unprecedented levels, with holdings in gold and silver exchange-traded funds (ETFs) hitting new records in August. 

This surge reflects the broader 2025 trend, as investors seek safe havens amid heightened economic volatility.

To this end, gold-backed ETFs climbed to an all-time high of 2,905 tonnes, up about 310 tonnes year-to-date, according to Bloomberg data shared by The Kobeissi Letter on September 3. 

The inflows coincide with gold prices breaking successive records this year, surpassing $3,500 per ounce for the first time.

Analysts attribute the rally to growing expectations of Federal Reserve rate cuts, a weakening dollar, and persistent demand from central banks and institutional investors. 

Notably, the pattern has been one of steady accumulation, with short consolidations followed by decisive breakouts, backed by gold’s status as the most reliable safe-haven asset. 

Silver’s record demand 

Meanwhile, silver ETF holdings rose to 25,044 tonnes in August after seven consecutive months of gains, with nearly 3,000 tonnes added during that span. The rally has pushed the white metal into the low $40s per ounce, marking its sharpest advance in more than a decade.

Unlike gold, silver’s momentum has been driven not only by investor inflows but also by industrial demand from solar panel production, electric vehicles, and electronics.

Elevated lease rates of around 2%, well above the typical near-zero levels, signal tight supply conditions, further accelerating its climb.

At the same time, the contrasting yet complementary trends in the two metals are reflected in the narrowing gold-to-silver ratio, as silver outpaces gold. 

While gold continues its steady rally, silver is in a sharper breakout phase, echoing past cycles where it lagged before catching up.

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