Local and global markets have witnessed fundamental shifts in consumer and investor behavior recently, with silver prices reaching unprecedented highs. This surge is driven by traders seeking more flexible and less expensive investment alternatives compared to the yellow metal, thus reshaping the landscape of precious metal acquisition and savings in the region.
The economic context and the rise of gold
Historically, silver has long been considered “poor man’s gold” and a safe haven after gold during times of economic crisis and inflation. With the continued rise in gold prices, reaching levels that may be beyond the reach of small investors, liquidity has shifted towards silver. This shift is not merely local; it reflects a global trend where silver is gaining value not only as a precious metal but also as a key raw material in many modern technology industries and clean energy sectors, thus enhancing its potential for future price growth.
In this context, a field survey conducted by Al-Youm newspaper revealed a significant increase in demand for silver in Saudi markets. Al-Mu'tasim Abdullah, a trader in the market, confirmed that silver bars and coins have become the preferred investment option, explaining that the risk and potential loss upon sale are lower, typically ranging from 10% to 20% compared to manufactured jewelry, making them a good savings vehicle.
Silver as a safe haven and investment alternative
Economic experts believe that silver has successfully become a safe haven for a wide range of customers seeking to preserve the value of their money. It has become an attractive option for saving and acquiring, whether for personal use as an ornament or as an alternative investment tool to cope with global inflation.
For his part, expert Taher Al-Arbash explained that gold remains the safe haven asset due to its rapid rise, limited declines, and historical stability. However, Al-Arbash described investing in silver as a "promising step," noting that it is a relatively new arena that could offer attractive returns, but it is fraught with some risks stemming from price volatility.
Taher Al-Arbash
Al-Arbash advised small investors, specifically those who do not have enough liquidity to buy gold, to turn to silver, provided they are patient and look at the long-term returns, and do not rush to sell to make quick profits, in order to ensure that they do not miss out on potential opportunities in this rising metal.
Direct relationship and inflation in prices
In a related context, Abdullah Al-Muhammad Ali explained that silver prices are directly correlated with gold prices; whenever the price of gold rises, silver follows suit. However, he noted that silver is not a complete substitute for gold due to the significant difference in market value and trading volume. He pointed out that the recent price increases have boosted customer confidence in 21-karat and 24-karat gold, while simultaneously increasing the appeal of silver bullion.
Abdullah Al-Muhammad Ali
Regarding the direct impact on the end consumer, Radi Al-Dajani pointed out that price changes have clearly affected men's jewelry. Al-Dajani revealed a significant price surge, with the price of a silver ring jumping from 100 riyals to 300 riyals in a short period, reflecting the extent of inflation and the increasing demand for the precious metal.
Al-Dajani declined to give definitive investment advice at the present time due to the uncertainty of the global economic situation and market volatility, merely pointing out that bullion of various weights remains the best and safest option for those who wish to enter this market at present.
The future of investment in metals
Despite this demand, “Muhaymid Al-Khalafi” confirmed that the firm conviction that “gold is gold” still dominates the collective consciousness of society, as the yellow metal remains the most trusted and stable haven over time, even though price jumps have prompted many to try silver.
Muhaymid Al-Halafi
Najib Al-Dosari concluded the scene by emphasizing that silver has begun to take the place of a “treasury” for a wide segment of citizens and residents, with the diversity of its sources in the local market between Iranian, Yemeni and Indian, which has made it a strong competitor in the mind of the consumer as a savings option available to everyone, especially in light of expectations of continued fluctuation in the global economy.
Najib Al-Dossari
