The silver price is currently the highest level in 14 years – a signal that makes many investors listening. Because not only the performance, but also the background is remarkable: in addition to geopolitical tensions and ETF purchases, the shortage of increasing prices leads to increasing prices. In London, for example, the loan costs for silver have climbed to over 6 percent – a clear sign of scarcity.
At the same time, it shows that silver benefits from its double role. On the one hand, it is a cheaper “safe harbor” compared to gold, on the other hand it remains indispensable as an industrial metal – for example in the solar industry or with e -mobility.
But gold also stays in the game – especially among the big players: more and more central banks are buying the precious metal directly from domestic mines. According to World Gold Council, the number of such states in 2024 has increased significantly. The reasons: lower costs, promotion of local industries and more control over the supply chain. States such as Ghana, Colombia or the Philippines are therefore focusing on a strategic structure of their reserves – regardless of international markets and foreign currencies.
What does that mean for investors?
While the states adapt their reserve policy, private investors also react. The trend towards physical precious metals increases – for silver as with gold. If you think in the long term, you not only rely on price gains, but also to maintain value in uncertain times.