Silver prices in the UAE have been skyrocketing, outperforming gold and hitting record highs. The commodity has seen gains of nearly 33 per cent compared to gold’s 17 per cent this year. Spot silver prices recently surpassed the $30-per-ounce mark, reaching their highest point in over a decade. Prices have soared from around Dh2,800 per kg at the start of the year to over Dh3,800 currently.
Vijay Valecha, Chief Investment Officer at Century Financial, highlighted the metal’s rally from Dh3,127 per kilogramme on May 1 to Dh3,870 on May 21. From an investment perspective, Valecha explained that investing in silver at the beginning of the year would have yielded higher returns compared to gold. Silver is not the top choice for investors in the UAE, but its record rally could attract more investments in the future. The traditional way to invest in silver is by purchasing physical silver in the form of bullion or jewellery.
Ole Hansen, Head of Commodities Strategy at Saxo Bank, discussed the factors driving the recent rallies in silver and gold. He mentioned that tight supply for industrial metals and robust demand projections are supporting the metals’ attractiveness as investment opportunities. Additionally, Mohamed Hashad, Chief Market Strategist at Noor Capital, highlighted the correlation between gold and silver prices due to their roles as macroeconomic and currency hedges.
Silver’s value is underpinned by its dual role as both a financial asset and an industrial commodity. It is essential in various industries, especially in clean energy technologies such as solar panels. The Silver Institute expects silver usage to reach record levels this year. With industrial demand and investment interest, silver remains a compelling asset in the current market environment. Factors like geopolitical risks, Chinese retail demand, debt concerns, and inflation outlook are also impacting investor sentiment in gold and silver.
While gold and silver are the traditional go-to investments in precious metals, Hashad mentioned that palladium and platinum offer attractive alternatives due to their unique market dynamics and industrial uses. As the market continues to evolve, it is important for investors to consider all options available in the precious metals sector to diversify their portfolios and maximize returns. With silver’s record rally and promising future outlook, it could be a good time for investors to explore opportunities in this precious metal to capitalize on its potential growth.
