Silver joins gold as go-to investment as prices surge

Silber bars are on display at a jewelry store in Jongno District, Seoul, Sunday. Yonhap

Silver is rapidly emerging alongside gold as a favored safe-haven asset as intensifying geopolitical tensions and a weakening U.S. dollar drive precious metal prices, market watchers said Tuesday.

The rally reflects growing global demand for safe-haven assets, prompted by heightened military and diplomatic frictions in Europe and the Arctic region. The latest include tensions surrounding Greenland, Venezuela and Iran.

According to financial market data, silver banking accounts sold by Shinhan Bank posted a combined balance of 346.3 billion won ($260 million), Friday. This is a sharp increase from 75.3 billion won as of end-August last year.

The number of Shinhan's silver banking accounts surpassed 30,000 for the first time this month, standing at 30,891 as of Friday.

Account numbers had remained at around 16,000 for several years since 2022, but they began picking up through the first half of last year before accelerating sharply in the second half.

The investment frenzy has been fueled by a historic rally in silver prices.

On Saturday (local time), international silver prices surpassed $100 per ounce for the first time.

Silver’s rise has been particularly pronounced due to its dual role as both a monetary and industrial metal.

Widely used in solar panels, electric vehicles and consumer electronics, silver has benefited from structural demand tied to the global energy transition and advanced manufacturing.

Market analysts estimate the total global market capitalization of silver at roughly $6 trillion.

“Interest in alternative assets has been rising since last year,” said Park Sang-hyun, an analyst at iM Securities. “Silver prices have increased due to safe-haven demand amid currency depreciation concerns, as well as strong industrial demand.”

However, silver still remains highly volatile, since price swings tend to be larger than those seen in gold. “Investors should be cautious about making additional purchases," he said.