(1) Surge in Industrial Demand Unlike gold, more than half of silver is used for industrial purposes.
Gold Prices Soar: How About Investing in Silver Now?
Gold prices have reached an all-time high.
Many investors now feel that gold has become too expensive to invest in.
Amid this sentiment, silver is gaining attention as an alternative investment option.
How Much Has the Price of Silver Risen?
International silver prices have reached their highest level in 13 years since 2011.
So far this year, silver has surged by as much as 33%, outpacing gold (29%) and Bitcoin (22%) over the same period.
Looking at the past year, silver prices have jumped by 55%.
Boom in Domestic Silver Investment Products
Silver bars sold by KB Kookmin Bank, Shinhan Bank, Woori Bank, and NH Nonghyup Bank
jumped from 790 million won last year to 5.69 billion won this year, an increase of more than sevenfold.
'Silver Issue' by Shinhan Bank is also gaining popularity.
In just one year, the number of accounts surpassed 20,000, and the balance soared from 43.4 billion won to 84.7 billion won (up 95%).
Why Are Silver Prices Rising?
In particular, demand has been steadily increasing as it is used as an essential material in the recently booming fields of eco-friendly energy, electric vehicles, and artificial intelligence (AI).
Over the past decade, demand for industrial silver has increased by nearly 40%.
(2) Supply Shortage Silver is directly produced from only one-quarter of the total production from silver mines, while the rest is produced as byproducts during the mining of other metals such as gold or copper.
Therefore, it is structurally difficult to suddenly increase the supply volume.
Moreover, the supply shortage is worsening as silver mine development is restricted due to strengthened environmental regulations. Gemini generated image.
Will Silver Prices Continue to Rise?
Many experts predict that silver prices will rise even further.
There is a growing perception that silver is a safe asset undervalued compared to gold,
and some countries, such as Russia, are moving to include silver in their national reserves.
The gold-to-silver ratio is also at a historically low level,
leading many to believe that there is significant room for silver's value to rise further.
Hwang Sunkyung, Researcher at Hana Financial Group Research Institute
"Technological advancements, the expansion of AI infrastructure, the spread of electric vehicles, and the shift to eco-friendly energy are all expected to further accelerate demand for silver in the future."
Will silver become not just a simple alternative,
but the next major investment destination?
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Edit Maeng Jiae mjiae@asiae.co.kr
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Reporter Kwon Jaehee jayful@asiae.co.kr
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