Driven by a 73% price surge and booming industrial demand, the more affordable precious metal is drawing a new wave of investors seeking strong, short-term profits.
A significant shift is underway in the UAE’s investment landscape as silver, long overshadowed by gold, emerges as a powerhouse asset, delivering substantial returns for local investors.
The trend is perfectly illustrated by the experience of Ashraf Malik, a Dubai-based businessman. A veteran gold investor, Malik diversified into silver this September, purchasing two kilograms at Dh4,807 per kg. In a mere six weeks, he sold his holdings for Dh6,192 per kg, netting a profit of Dh2,770—a nearly 30% return on his investment.
“I didn’t expect such a quick rise,” Malik remarked. “The returns clearly show that silver can be incredibly rewarding, even for those starting with a modest amount.”
Malik’s success is not an isolated case. It reflects a global bull run where silver has dramatically outperformed its yellow counterpart. While gold has posted a strong 52% year-to-date gain, silver has skyrocketed by over 73%, leaping from $28.78 to nearly $50 per ounce.
Market Witnesses a “Surge in Demand”
This impressive price performance has triggered a palpable surge in demand within the UAE retail market.
“Yes, there has been a massive increase in silver buyers,” confirmed Chintan Patni, Senior Manager at Jewel Trading. “During Diwali, demand was so high it led to temporary market shortages.”
Industry experts note that silver’s appeal lies in its accessibility and its new role as a diversification tool.
“Silver is emerging as a compelling alternative for those looking to diversify their portfolios or begin with a smaller entry point,” explained Vivek J, Retail Head at Malabar Gold and Diamonds. “While gold demand remains robust, the potential for significant growth in silver over the next five years is attracting keen interest.”
The “Utility Metal”: From Ornaments to AI
Analysts attribute silver’s robust performance to a fundamental shift in its economic role. Once primarily a metal for jewellery, it has become indispensable to modern technology.
“Silver is now a critical utility metal,” Patni elaborated. “Its use in AI, solar panels, and electronics is soaring, while supply struggles to keep pace. This supply-demand dynamic makes further price increases very likely.”
With its unique position as both a precious and an industrial metal, silver is shining brightly, offering UAE investors a potent combination of affordability, utility, and impressive growth potential.
United Arab Emirates Dirham Exchange Rate
