Singapore dealers scramble for silver as demand, prices soar

Key Concepts

• Silver Price Surge (2025): A significant 161% increase in silver prices, exceeding gold’s performance.
• Physical Silver Demand: Extremely high demand for physical silver, leading to long waitlists for dealers.
• Kiloba: A unit of weight for precious metals, specifically 1 kilogram.
• EV/Solar/Semiconductor Demand: Increasing industrial demand for silver due to its use in electric vehicles, solar panels, and semiconductors.
• Waitlists: Dealers are implementing waitlists due to supply shortages, with delivery times extending into 2026.

Silver’s Price Surge and Demand – A Detailed Overview

The silver market is currently experiencing a significant boom, with prices surging by 161% in 2025, surpassing the performance of gold. This surge is particularly noticeable in Singapore, where prices have reached record highs and physical silver stock is dwindling rapidly. Dealers are facing unprecedented demand and substantial delays in receiving new supplies.

Supply Chain Disruptions and Wait Times

The demand for physical silver is described as “very crazy,” with dealers actively limiting order intake. One dealer reported placing an order for 300 kg of kiloba (1 kilogram bars) in December, with expected delivery not until March 2026. This illustrates a severe bottleneck in the supply chain and extended lead times for acquiring physical silver. The term “kiloba” refers to a standard unit of weight used in the precious metals trade, representing one kilogram of silver.

Shifting Buyer Demographics

The profile of silver buyers is evolving. Traditionally, silver investment was dominated by a specific demographic. However, the current boom is attracting a younger, more international investor base. Furthermore, buyers are increasingly turning to smaller dealers as larger players struggle to maintain stock levels. One dealer specifically noted a six-fold increase in sales within a single month, demonstrating the rapid acceleration of demand.

Industrial Demand as a Key Driver

The price increase isn’t solely driven by investment demand. Silver is a crucial component in several rapidly growing industries, including electric vehicles (EVs), solar panels, and semiconductors. This industrial demand is a significant contributing factor to the price surge. Elon Musk has publicly expressed concerns regarding the rising cost of silver, highlighting its importance in these sectors.

Impact on Consumers – A Phased Approach

While the surge in silver prices is substantial, experts believe the direct impact on consumers will be initially limited. The reasoning is that silver constitutes a relatively small percentage of the overall cost of manufacturing EVs, batteries, and chips. However, the transcript anticipates a phased impact.

As countries like China and Korea pay higher prices for silver to produce these components, those increased costs will eventually be passed on to consumers in the form of higher prices for finished goods. This suggests a delayed, but inevitable, price increase for end-users. The transcript explicitly states, “Once China and Korea, they pay higher for the silver to make their EVs or batteries or chips and all that, then of course, they'll raise the price higher for consumers like us.”

Quantitative Data & Supporting Evidence

• Price Increase: 161% surge in silver price in 2025.
• Sales Increase: One dealer reported a six-fold increase in sales in one month.
• Delivery Time: 300 kg kiloba order placed in December with delivery expected in March 2026.
• Component Cost: Silver is a “very small component” of the total cost of EV/battery production.

Synthesis & Main Takeaways

The silver market is currently experiencing a confluence of factors driving a significant price surge. Strong investment demand, coupled with increasing industrial usage in key growth sectors like EVs and renewable energy, is creating a supply-demand imbalance. While the immediate impact on consumers is expected to be minimal, the transcript suggests a future price increase as higher production costs are passed down the supply chain. The long waitlists for physical silver and the shifting buyer demographics indicate a potentially sustained period of high demand and price volatility.