JUST as gold skyrocketed to giddy heights recently, so has silver amid global political uncertainty mainly sparked by US President Donald Trump’s tariff threats rising 55% in the first month of this year, PPTVHD36 said today (Feb. 1).
Ms. Thipa Navawattanaprasert, CEO of YLG Bullion and Futures Co., Ltd., said after opening at US$71.58 per ounce on Jan. 1, the price of “poor man’s gold” continued escalating reaching a peak of US$121.64 per ounce.
There are several factors for this rapid price rise with a key one being concern about a global trade war as Trump unleashed new tariff threats plus his unprecedented conflict with the Federal Reserve which led to investors seeking alternative investment options amidst high gold prices.
Furthermore, silver is a rare and highly sought-after mineral. Since Jan. 1, China has implemented stricter silver export licensing system to conserve its resources domestically. Given its status as a major silver producer and exporter, this measure has significantly reduced the global supply.
The surge in silver price has drawn global attention. Several financial institutions revised their price target with Citigroup doing so on Jan. 29 increasing it $150 per ounce from their previous target of $100 per ounce, citing strong speculative demand and tight supply outside the US.
At the same time, silver is not merely an investment asset. The main players driving the price increase include both investors and actual users in the industrial sector (industrial giants), who use silver in the production of goods. This accounts for 55% of the market. The demand for silver from this group of players is genuine, not speculative. This creates very strong purchasing power, resulting in a stable price base.
Industries that require silver include clean energy, such as solar panel manufacturers, who use silver as a key component in electricity generation. Demand is expected to surge significantly in 2026 due to the global warming reduction trend.
It is also used in the production of electric vehicles and AI & Data Centre industry, which uses silver for AI chip production and server infrastructure.
Retail investors also play a significant role, driving the sharp rise in silver price. Globally, retail investors, seeing gold price at a high level, have turned to silver instead, earning it the nickname “the poor man’s gold.”
Additionally, some retail investors collect rare silver coins or silver bars, a form of speculation, while others collect it simply for its tangible value. And it gives a more secure feeling than the numbers in a bank account.
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Top and Front Page – Silver bars and coins. Photo – Sven Hoppe/picture-alliance/dpa/AP and published by CNN
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