Silver prices are rising sharply as the expansion of the artificial intelligence (AI) industry converges with rising expectations for a semiconductor recovery.
'e-Silver' Q1 Trading Volume Hits 242.2 Billion Won, a 20-Fold Surge Year-on-Year
According to the Busan Digital Asset Exchange on Thursday, trading volume of "e-Silver," a silver-backed product traded on the real-world asset (RWA) platform Bdan, reached 242.2 billion won in the first quarter of this year. That marks a nearly 20-fold increase from about 12.6 billion won in the same period last year.
Silver has traditionally been classified as a safe-haven asset alongside gold, but its character as an industrial material has recently come into sharper focus. Used as an essential material in the manufacturing of AI server semiconductors, electric vehicle components and solar panels, silver is increasingly playing the dual role of investment asset and industrial raw material, analysts said.
As global competition over AI infrastructure intensifies, expectations for a recovery in the semiconductor industry are also lending momentum to the rise in silver prices. On the Korean stock market, interest in related raw materials is reportedly spreading in tandem with strong share prices of Samsung Electronics (005930.KS) and SK hynix (000660.KS).
Global Silver Prices Surge 14% in One Week on Supply Shortage Concerns
In addition to demand, supply shortage forecasts are also driving prices higher.
The Silver Institute, a specialized silver market research organization, projected that the global silver supply shortfall this year would reach 46.3 million ounces, up 15% from the previous year. The analysis points to supply failing to keep pace with demand growth, which is centered on the solar and electric vehicle industries.
International prices are also moving quickly. According to Investing.com, the July silver futures price jumped about 14% from $77.4 per troy ounce on the 6th to $88.4 on the 13th. The price of e-Silver on the Bdan platform likewise rose more than 14% over the same period, from 3,540 won per gram to 4,052 won.
The Busan Digital Asset Exchange believes that as the growth of AI and eco-friendly industries continues, investment demand for industrial metals is likely to grow alongside. Competition in the digital real-world asset market, the exchange added, is expected to unfold around transaction convenience and securing credibility in the link to physical assets.
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