Forget Gold, Bitcoin: Silver Is Today’s Investor Safe Haven

Juhi Mirza
Image of a silver bar
Image Source: Unsplash

Gold and Bitcoin have now become leading safehouse assets for investors to park their funds in. During the time of the steep economic crisis, gold has long been serving as a leading asset, taking the charge forward by helping investors secure maximum returns. The baton was later passed onto Bitcoin, which analysts have started to proudly tout as the digital iteration of gold. That being said, there’s another major contender in the safe-haven asset race gaining rapid momentum. Here’s more about silver, an asset whose corporate demand is fueling its massive price rally.

Also Read: Three Fed Rate Cuts in 2025, Starting Sept. 17, Reuters Survey Reveals

Silver Is The New Safe Haven Winner

Silver bars
Source: Pixabay

The US economic crisis is worsening with each passing day. Weak labor and employment data statistics are compelling the Federal Reserve to cut rates sooner rather than later. If the Federal Reserve ends up announcing new rate cuts, chances are that the US dollar may nosedive, considering the large capital outflow that may happen post-cuts, as investors rummage for new safe-haven assets. Amid all this, gold and Bitcoin have been documenting steady rallies, fueled by the anticipation of looming rate cuts this September.

However, silver is another leading contender, which has been scoring steady highs at the moment. Per the Kobeissi letter, the demand for silver is hitting unprecedented highs, with UK silver lease rates topping charts at present. Moreover, the portal shared how COMEX silver warehouse investors are also at their highest, underlining the rapid spike in the metal’s demand.

“Investors are scrambling for silver: Silver lease rates, the one-year borrowing cost of silver in the UK, are above 5% for the 5th time this year. This is well above historical levels of near-zero rates, signaling supply shortages. Additionally, the price gap between New York silver futures and London spot prices widened to $1.20 per ounce. Meanwhile, COMEX warehouse silver inventories are now at their highest level since records began in 1992. Demand for silver is historically high.”

Silver Demand Soars: Why?

Silver is currently in hot demand, owing to its multiple commercial uses. For instance, the metal is now heavily used by the data chip industry, followed by industries related to electricity, smart grid infrastructure, and manufacturing units.

“Silver isn’t precious anymore, just critical. Solar’s conductivity makes it the most crucial metal for the electrification of the industrial world. In the unlikely event that metal’s demand from solar and EVs falls in the coming years, there are other sources of demand waiting to take over or already spiking: every AI data center chip. Every advanced electrical relay. Every smart grid infrastructure upgrade. Every U.S. manufacturing facility. All of them are ratcheting up the silver demand. Which is why the global industrial silver demand is soaking up nearly all of the silver on the planet.

Projected Future Price Of The Metal

As per Rashad Hajiyev, a leading financial expert, silver is already on its path to secure a new high at present.

Hajiyev predicts gold to hit $3900, with silver price claiming $50 as demand for both metals hits new highs.

“Very good price action in precious metals. They paused to consolidate recent gains. Although I would like to see them correct a bit lower to ignite gold’s rally to $3.9k and silver’s to $50 plus. This post is not investment advice…”

Also Read: Gold Should Be 10–15% of Portfolios, Dalio Urges Investors