Silver’s rise was not limited to the investment side only, but was also linked to its industrial importance; silver is an essential element in electrical circuits, electric cars, batteries, solar panels, and medical devices, in addition to its use in the manufacture of jewelry and coins. “China” and “India” are considered the largest consumers of silver, given their huge industrial base, large population, and the role of silver as a traditional store of value.
The silver market is characterized by a specificity that increases its volatility, as it is smaller in size and less liquid compared to the gold market, and it does not enjoy reserve support from central banks as is the case in the gold bullion market in “London”. At a time when global demand for silver has exceeded mine production for five consecutive years, the largest producing countries such as “Mexico,” “Peru,” and “China” have faced regulatory and environmental obstacles, while silver-backed exchange-traded funds have attracted hundreds of millions of ounces. (Asharq)
