Hong Kong residents are turning to silver as a safe-haven asset, driven by the precious metal’s surge in value and the high cost of gold. A precious metals shop in the city’s central business district sold out of hundreds of silver bars in just over an hour on Wednesday, with customers queuing from as early as 5 am. Retiree Ken Wong, 65, was among those who managed to purchase five bars, citing the opportunity to invest in a rapidly rising asset.
The price of gold has reached a record high of over $5,588 an ounce, while silver has struck an all-time peak above $119 an ounce, up over 60 percent this year. Investors are seeking safe places to put their money amid growing nervousness over global turmoil sparked by US policies. Pakistani Meran Jawad, a 38-year-old delivery driver, waited in line to purchase silver bars, citing the geopolitical impact of US President Donald Trump’s policies on the cost of living.
Chen, a 40-year-old jewelry businessman from Shenzhen, reported that his firm’s silver production sales have increased tenfold this month compared to November. The company has reduced its gold jewelry stock as orders shift towards silver, mainly to wholesalers. Economist Samuel Tse of DBS Bank attributes the surge in precious metals investments to geopolitical tensions and rising inflation, with central banks diversifying their portfolios to include gold.
Outside gold-buying shops, dozens of people formed long lines to sell their precious jewelry. Vivian Lam, a finance worker, said she had not expected to see such a dramatic surge in gold prices. Retiree Michael Ko, 55, who had purchased gold bars several years ago, decided to sell his physical gold to fund other opportunities, citing the metal’s ability to hold its value better in times of crisis.
The rapid rise in precious metals prices has prompted investors to take profits and seek alternative safe-haven assets. As the global economic landscape continues to evolve, the demand for silver and gold is likely to remain strong. With the US-China trade war and other geopolitical tensions showing no signs of abating, investors are increasingly turning to precious metals as a hedge against uncertainty.
