An unprecedented demand for silver bullion increases competition between stores

Gold and jewelry trade outlets officials confirmed that the local markets have witnessed, during the recent period, a remarkable growth in the demand of a large number of dealers to buy silver bullion, whether for the purposes of savings or long-term investment, noting that this increasing demand has led to many stores entering into intense competition to provide this type of bullion, to the point that stores have begun displaying silver bullion on their facades, in a phenomenon that had not occurred previously.

They explained to “Emirates Today” that the main reason behind this growth in demand for silver, which they considered unprecedented, is due to the historical rises witnessed in gold prices, which prompted many dealers to search for alternatives that are less expensive and more acceptable in terms of price, pointing out that silver, despite recording noticeable increases at record rates, is still lower in price by a large margin compared to gold, which makes it an attractive option for a wide segment of investors.

They expected continued growth in demand for silver bullion during the coming period, in light of expectations that their prices will continue to rise.

Expand and compete

In detail, the sales manager at Al-Sarraf Jewelery Trading Store, Abdullah Muhammad Ali, said that the local markets have recently shown clear indications of increasing interest among dealers in purchasing silver bullion for the purpose of saving or long-term investment.

He added that the record and unprecedented rises in gold prices motivated some investors to turn to silver as a suitable and lower-priced option, with the possibility of achieving future gains if kept for long periods.

Ali stated that the increasing demand for silver bullion has prompted many stores to expand and compete in displaying silver products, especially the bullion that they now display on their facades in a phenomenon that was not the case before, in addition to providing different types and weights of bullion to meet the needs of customers.

He pointed out that buying silver does not replace investing in gold for those who have the ability to do so, but it represents an additional option based on long-term investment, which requires not rushing into buying or selling decisions, and keeping bullion until achieving appropriate returns with the expected increases in the future.

Prices

Ali explained that the price of a kilogram of silver reached about 8,800 dirhams yesterday, after it was around 7,000 dirhams just one month ago, and about 5,000 dirhams two months ago, which reflects the size of the significant rise in silver prices locally and globally during a short period.

He explained that silver bullion does not entail a manufacturing cost, but there are fees that vary from one store to another, with an average range between 100 and 150 dirhams per kilogram, with the possibility of decreasing depending on sales policies, especially when purchasing more than one bullion at a time.

Most useful

For his part, the sales official at the “Al-Mawjih Gold and Jewelry Trading” store, Iyas Wrana, said that the local markets witnessed during the recent period unusual phenomena in terms of stores racing and competing to provide silver bullion, compared to previous periods, in order to keep pace with the increasing and unprecedented demand from customers.

He stressed that these alloys have become a suitable and less expensive option compared to gold, which has contributed to increasing demand for them.

He added that the largest percentage of demand is concentrated on silver bullion weighing one kilogram, due to its lower prices compared to gold, which makes the price per kilogram appropriate and more feasible for the purposes of saving and investment in the long term.

Rapid changes

In turn, the sales official at the “Syed Jamal Shah Jewelry” store, Habib Shamashul, agreed that the markets are witnessing a remarkable growth in demand for silver bullion, especially kilogram-weight bullion, as it is the most suitable and feasible for saving and investment. He said that many dealers prefer to buy more than one bullion, and keep it as a long-term investment.

Shamashul added that the increasing demand for silver, driven by the significant rise in gold prices and the movement of silver prices in turn, prompted many stores that did not previously provide silver bullion to expand their offer, compete to attract consumers, and increase their market shares.

He explained that silver has become a suitable alternative for savings for dealers whose budgets do not allow the purchase of gold bullion.

He pointed out that silver prices are characterized by faster changes compared to gold prices, which often witness stable increases in the long term, indicating that silver prices depend to a large extent on global demand levels, due to their connection to various industrial sectors, which makes the feasibility of investing in them based on purchasing larger quantities as much as possible, and following long-term investment strategies, without rushing to achieve profits.

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Diversify investments

The Chairman of the Board of Directors of the Gold and Jewelery Group in Dubai, Tawhid Abdullah, confirmed that the demand for silver is currently witnessing remarkable growth, compared to previous periods, with many dealers eager to buy silver bullion for the purposes of saving and investment.

He called for the importance of achieving balance and diversification in investments, and not focusing on one type of product, noting that diversification contributes to providing greater protection for investors. He said that investing in silver must be done with caution, given that its price movements have historically been less stable compared to gold, stressing the importance of not rushing to resell silver, with the need to diversify investments, and focus more on gold compared to other metals, to ensure achieving more stable returns in the long term.