GOLD, SILVER, PLATINUM: A PRIMER FOR RETIREES

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The media is reporting that investors are showing heightened interest in Gold, Silver and Platinum as alternatives to savings deposits, annuities and stocks. Here is a primer. 

Gold, silver, and platinum are classified as precious metals because they are naturally occurring elements defined by three primary criteria: rarity, high economic value, and chemical resistance (for various industrial ushes).

GOLD (XAUUSD)

-Current Price: $5,108.25 USD (as of Feb 20, 2026)

-Reserves: Relatively scarce; estimated 50,000 metric tons of economically viable reserves remaining globally

- Mining: Primarily mined directly from gold ore deposits through open-pit and underground mining; also recovered from placer deposits

- Top Producer: China (approximately 11% of global production), followed by Australia and Russia)

- Investment Role: Premier safe-haven asset, inflation hedge, currency debasement protection, central bank reserve asset, portfolio diversification

- Industrial Usage: Electronics (circuit boards, connectors), dentistry, aerospace components, medical devices; industrial use represents ~10% of demand

SILVER (XAGUSD)

- Current Price: $84.22 USD (as of Feb 20, 2026)

- Reserves: More abundant than gold; estimated 530,000 metric tons of reserves globally

- Mining: Primarily mined as a by-product of zinc, lead, copper, and gold mining (70% of production); only 30% from primary silver mines

- Top Producer: Mexico (approximately 23% of global production), followed by Peru and China

-Investment Role: Dual role as precious metal and industrial commodity, inflation hedge, more volatile than gold, accessible entry point for retail investors

- Industrial Usage: Solar panels (photovoltaics), electronics, semiconductors, batteries, water purification, medical applications (antimicrobial), mirrors, catalysts; industrial use represents ~50% of demand

PLATINUM (XPTUSD)

- Current Price: $2,147.44 USD (as of Feb 20, 2026)

- Reserves: Rarer than gold; estimated 69,000 metric tons of reserves, highly concentrated geographically

- Mining: Mined from primary platinum group metal (PGM) deposits, often alongside palladium and rhodium; deep underground mining

- Top Producer: South Africa (approximately 70% of global production), creating significant supply concentration risk

- Investment Role: Critical mineral designation, industrial demand driver, portfolio diversification, less traditional safe-haven status than gold, supply concentration creates volatility

- Industrial Usage: Catalytic converters (automotive emissions control), hydrogen fuel cells, petroleum refining catalysts, electronics, medical devices (pacemakers, chemotherapy drugs), glass manufacturing, hard disk drives; industrial use represents ~60% of demand

Chart 1 above shows that relative to their 1 year Mean, Gold is most overvalued and Platinum the least overvalued, while Silver is in-between.

Chart 2 and Table 1 below Chart 2 shows that the prices of the three metals are mainly driven by fundamental and not speculative activity. Table shows speculative component of each metal. Silver is the most speculative followed by Platinum and then Gold.





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