From Gold to Platinum and Silver: The Rise of Platinum and Silver Metal-Backed Finance

Gold: The Original Collateral Asset

Gold has served as a trusted form of collateral in finance for thousands of years, with historical records documenting gold-secured loans dating back to the ancient Egyptians, Greeks, and Romans. In medieval Europe, goldsmiths issued certificates for stored gold—early forerunners of banknotes—against which borrowers secured funds. The gold standard era further solidified gold’s role in sovereign and commercial credit, with gold-backed bonds supporting global monetary stability throughout the 19th and early 20th centuries.​

Modern financial systems continue to rely on gold for collateralized loans, repo transactions, and sovereign debt. Today, gold is routinely used as collateral in both traditional lending and wholesale market operations, thanks to its universal liquidity and market trust.

Platinum and Silver: The New Collateral Assets

In 2025, precious metal-backed finance is shifting, while gold remains foundational, silver and platinum are increasingly accepted as collateral for government bonds, loans, and structured products.

• Belarus: In 2025, Belarus issued platinum and silver-linked bonds tradable on the Belarusian Currency and Stock Exchange following earlier successful gold-linked bonds.
• India: The Reserve Bank of India enacted broad reforms in mid-2025, now permitting banks and non-bank financial companies (NBFCs) to accept both gold and silver jewellery and coins as loan collateral.
• Russia: Russia relies mainly on gold for reserves and collateral, with state banks periodically issuing gold-backed debt. The Russian Central Bank also holds significant platinum reserves, and pilot programs have begun for platinum- and silver-backed loan instruments, aiming to mobilize domestic reserves and support industrial policy.
• Platinum-Backed Loans: Specialist lenders such as Borro and Battle Bank now offer loans backed by physical platinum bullion, coins and jewellery. In 2025, Borro reported a 25% increase in platinum-secured loan applications versus 2024, with loan-to-value ratios typically ranging from 50–70%.
• Industrial Platinum Financing: According to the World Platinum Investment Council, platinum lease and lending market activity rose by 15% year-over-year in Q1 2025.

Platinum and silver are rapidly gaining recognition alongside gold as trusted stores of value that support mainstream financial activity. Their expanding use as collateral for loans and bonds highlights growing market confidence in these metals, reflecting their dual roles as both industrial and monetary assets.