Srivatsava Ganapathy

Aggressive actions proposed by the U.S. on several countries will increase global friction, disrupt trade and energy supplies, and spark pushback from powers like China, the EU, and BRICS groups. It is likely to drive safe-haven demand for gold. Central bank buying from China, India, Russia, and a few others briefly stopped in the last two quarters of 2025. We expect the buying to resume later this year, giving strong price support to fight currency risks and limits. De-dollarisation keeps growing through new payment systems and gold-based trade, cutting U.S. dollar power and lifting demand when the dollar weakens from U.S. debt and easy global money policies.

Key factors: supply deficit, increased demand, geopolitical tensions. Major users of silver for industrial applications such as the U.S. and China have listed silver as a critical mineral. This is likely to affect global supply chain in the short to medium term. High and volatile prices are not conducive for growing industrial demand. To some extent, high silver prices might increase scrap-flows into the market and might bridge the deficit. Higher gold prices as well as record high copper prices likely to provide support for high silver prices.