Other metals investors should be considering as gold and silver hit all-time highs: "Consider what powers AI"

GOLD and silver are hogging the limelight right now at all-time highs – but which other metals should investors be looking at and considering?

This week, gold broke $3,440 an ounce while silver broke $63.70 in a renewed rush to safe haven assets following growing tensions in Iran and the prospect of US military action.

But other metals are surging in price too – platinum is up almost 140% over the past year, while palladium is up just over 91%.

And then there are industrial metals such as copper, nickel and aluminium.

Though these metals don't have the brand lustre of gold and silver, they are still tradable and can deliver strong returns.

David Belle, Founder and Trader at Fink Money, said the metals involved in AI infrastructure may rise in value.

He added: "Copper and platinum have had great runs and I’d expect them to continue due to their requirement on the infrastructure buildout that’s expected to occur over the next five or so years. 

“Data centres and energy wiring require copper while platinum is similarly used in servers that enable data centres to run. If you're an investor betting on AI as the next big thing, then consider the metals that power it.”

Anita Wright, Chartered Financial Planner at Ribble Wealth Management, warned that some metals are “vulnerable” and urged caution.

She continued: "Gold and silver may dominate the narrative, but extending into other metals is not a simple ‘more is better’ decision. For most average investors, it is hard to justify meaningful exposure beyond gold (and perhaps a smaller allocation to silver) unless you understand the cycle, can tolerate large drawdowns, and are treating it as a small satellite holding alongside a sensible core portfolio. 

"Crucially, industrial metals are not the same kind of hedge that gold can be. If liquidity tightens and yields rise, that can ‘kill everything’ that is risk-asset-adjacent; in that environment, industrial metals and mining shares can be vulnerable even if the longer-term structural story still holds. 

"For those who want broad exposure, a diversified commodity fund or basket can reduce single-metal risk, but the trade-off is clear: you may dilute the very upside you were targeting."

Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said it was better to find a fund rather than invest in metal directly.

He continued: “All boats rise on a tide when it comes to precious metals as they are seen as a hedge to the lunacy that is happening in the White House. That being said, holding metals won’t benefit from compounding of income as they only appreciate in capital value. Finding a good industry-wide fund might be a better play for the savvy investor.”

Scott Gallacher, Director at Leicester-based Rowley Turton, warned against investing in metals.

He added: “Whilst commodities such as industrial metals can form part of a portfolio, I generally view these as more of a speculation than an investment. They offer no inherent growth or income, with returns relying purely on price movements rather than compounding. 

"That creates a significant market-timing risk. Where exposure is appropriate, I would favour a diversified commodities fund, allowing a professional manager to adjust exposure between commodities rather than individual investors attempting to time specific metals.”