From Changi vaults to Asian markets, silver rallies even as caution grows
Heavy investor buying has pushed the metal into a persistent supply deficit despite softening industrial and jewellery demand
[SINGAPORE] From bullion vaults in Changi to trading desks across Asia, silver has emerged as one of the region’s hottest safe-haven trades, with prices trebling over the past year amid a surge in investor demand.
This comes despite softer demand from industrial and jewellery consumers, as Asian investors drive the market higher on concerns over currency debasement – or the erosion of a currency’s value – and rising government debt.
Rhona O’Connell, head of market analysis for Europe, Middle East and Africa as well as Asia at StoneX, noted that the tightness in Asia’s markets is largely because of over-the-counter buying of bars and coins.
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