Silver Prices Surge as Dealers in Singapore Struggle for Stock

Silver has become increasingly scarce in Singapore as a result of a global price surge that has prompted investors to rush toward the precious metal. Dealers are facing significant challenges in maintaining stock levels, with waitlists for purchases extending for months. This situation arises as precious metals have significantly outperformed other commodities, driven by economic uncertainty and geopolitical tensions.

Market Dynamics and Price Surge

In March 2025, silver reached a remarkable milestone, breaking the US$80-per-ounce mark for the first time. This represents a 161 percent increase over the past year, outpacing gold, which saw a 66 percent rise during the same period. Analysts attribute this surge to a combination of strong industrial demand—particularly from the electronics and renewable energy sectors—and a global supply shortage.

As demand has soared, investors have turned to bullion, placing additional strain on already limited supplies. According to Kwek Seow Bin, owner of the Singapore-based dealer Metal & Picks, sales of gold and silver in his shop surged nearly sixfold from November to December 2024. “For us dealers, we are not doing a lot of marketing. People are searching for us to buy physical metals,” he explained. Moreover, the demographic of buyers is evolving, with younger individuals and even foreigners increasingly interested in silver bullion.

Challenges in Stock Supply

The demand for silver has led to significant operational challenges for dealers. Kwek noted that around 90 percent of his customers now prefer silver over gold, despite its higher volatility. “The demand for physical silver is crazy,” he stated. He has had to raise profit margins on silver products and place larger orders, but even these orders face delays. One order for 300 pieces of 1kg silver bars is only expected to arrive in March, a stark contrast to previous turnaround times of one to two weeks.

To mitigate these challenges, dealers are increasing their order sizes and expanding online sales channels. As digital platforms gain traction, more buyers are seeking quick access to bullion. The growing interest in silver is also reflected in various industrial sectors, which account for about 60 percent of global silver consumption. Industries such as electric vehicles, solar energy, and semiconductor manufacturing rely heavily on silver for its high conductivity.

Dr. Tan Kee Wee, an economist at the Singapore Precious Metals Exchange, commented on the current market situation, stating, “There is an over-demand situation.” He noted that silver mines have struggled to keep pace with industrial demand over the past five years, exacerbating the supply shortage.

While rising silver prices may eventually translate to higher consumer costs, the immediate impact in Singapore is expected to remain manageable. Dr. Tan indicated that as major manufacturing hubs like China and South Korea pay more for silver to produce electric vehicles and batteries, the increased costs may eventually reach consumers. “The impact will not be major,” he added, explaining that silver constitutes a small portion of the total production costs for these products.

Despite high silver prices, Ang Yuit, president of the Association of Small and Medium Enterprises, noted that the actual effect on consumer prices remains limited. Silver comprises only a “very small” part of the total cost of solar panels when compared to other factors, such as manufacturing and shipping costs. He emphasized that while silver prices have reached record highs, the broader implications for consumer pricing are still manageable.

Analysts are closely monitoring whether physical silver continues to trade at a premium in Asia, as this would signal that industrial demand is still outpacing supply. Dr. Tan remarked, “For industrialists, they don’t care—they need the silver.” He explained that some industries are diversifying into platinum and palladium, which also experienced strong price gains last year. “They will bid higher because otherwise their factories will be short of silver and stop running,” he concluded.