In the UAE, silver has significantly outperformed gold, with prices reaching record highs. This year, silver has gained nearly 33%, surpassing the $30 per ounce mark for the first time in over a decade.
Comparatively, gold has risen by 17%. Spot silver prices have climbed from around Dh2,800 per kilogram at the start of the year to over Dh3,800.
Investment Insights
Vijay Valecha, chief investment officer at Century Financial, highlighted the investment potential of silver. An investment of Dh10,000 in silver at the beginning of 2024 would now be worth approximately Dh13,415. In contrast, the same amount invested in gold would have grown to Dh11,701. Silver’s dual role as an industrial commodity and financial asset contributes to its appeal, especially in sectors like clean energy, where it is essential for technologies such as solar panels.
Future Prospects
Experts suggest that silver will continue to shine due to its industrial demand and investor interest. Ole Hansen from Saxo Bank noted that the rallies in both silver and gold are driven by broader market dynamics and investor sentiment, not just their traditional role as safe havens. Factors such as geopolitical risks, demand from China, and inflation outlook also support these trends.