(Yicai) April 30 -- The recent fluctuations in gold prices have prompted investors and consumers to purchase other precious metals, such as silver and platinum, driving their prices up.

As investors rushed to buy precious metals other than gold, the silver spot price jumped about 15 percent to USD33.50 per ounce, and the platinum spot price rose around 10 percent to over USD996 per ounce so far this year as of yesterday.

The gold spot price exceeded the historic high of USD3,500 per ounce on April 22, sparking market enthusiasm. However, it plummeted soon after and remained quite unstable. The gold spot price was around USD3,324 per ounce yesterday.

This trend is also very evident among end consumers. Jewelry stores in Shanghai have been very crowded recently, but many clients are there to buy silver and platinum items rather than gold ones.

“Recently, there has been a noticeable increase in customers inquiring about platinum and silver jewelry,” a salesperson at a gold jewelry store in downtown Shanghai told Yicai.

“People think gold is too expensive right now,” the salesperson noted. “Platinum and silver jewelry are not only more affordable but also come in a wide variety of styles, making them perfect for daily wear.”

Silver prices also increased because of growing industrial demand. The applications of the metal in industries such as photovoltaics and electronics are constantly expanding.

Silver futures inventories have declined in the past three weeks, down by 194,823 kilograms in the week ended April 11, 54,989 kg in the week ended April 18, and 13,623 kg in the week ended April 25, according to data from the Shanghai Futures Exchange.

Platinum prices are also rising mainly because of a supply shortage.

“Even though the substitution effect of silver and platinum offers investors room for diversified allocation, they should be wary of short-term risks from their high volatility,” a precious metals trader said.

The silver market has a much smaller capital capacity than gold, making it more vulnerable to short-term capital movements, the trader added, noting that silver’s lower unit price and the high proportion of individual investors exacerbate the metal’s stronger speculative nature and higher volatility than gold.

If the global economic recovery further stimulates industrial demand, silver prices may continue to rise, analysts said. For platinum, it is crucial to monitor the demand for automotive catalysts and the progress of supply-side restoration, they added.

Investors can dynamically adjust their precious metals portfolios by considering indicators such as the gold-silver ratio to balance risk aversion and return goals, the analysts suggested.

Editor: Futura Costaglione