Saudi Central Bank Invests Tens of Millions in Silver

The price of silver has been rising rapidly in recent months. Last week, it was revealed that the Saudi Arabian central bank has purchased tens of millions of dollars worth of silver.

Saudi Arabia’s central bank entered the silver market by buying 932,000 shares of the iShares Silver Trust (SLV) exchange-traded fund, according to U.S. Securities and Exchange Commission filings. The central bank also bought 203,700 shares of the Global X Silver Miners ETF (SIL).

The total value of the two transactions amounted to just over $40 million. Although this is not a large investment considering the volumes of central banks and sovereign wealth funds, it is still a significant contribution to silver and reflects the ever-growing investment demand.

2025 Coin

Preorder

1oz British Britannia Silver Coin 2025

We sell 1+ £45.24 33.97 33,97 33.97 33,97 33.97 33,97 33.97 33,97 45.24 45,24 45.12 45,12 44.88 44,88 44.52 44,52

We sell £44.52 33.97 33,97 33.97 33,97 33.97 33,97 33.97 33,97 45.24 45,24 45.12 45,12 44.88 44,88 44.52 44,52

We buy £33.97

Compare Alert Add to cart

For silver, this is a sign of continued price increases and indicates increased investment demand. At the same time, it is a bet on paper silver and mining stocks. This means that the Saudi Central Bank probably does not see silver as a strategic and monetary asset. If the central bank had bought physical silver for its reserves, this would be a sign that silver is making a comeback as a monetary (reserve asset that replaces currency) metal .

However, such a large investment will likely give the Saudis the right to demand delivery of the fund’s underlying silver. Depending on the rules of the various funds, this right is granted to investors who have invested larger amounts in the funds (hundreds of thousands to millions of dollars, depending on the specific fund).

The Saudi Arabian Central Bank also manages the sovereign wealth fund, and some analysts say it is likely that the investment was made through that fund. It should be noted that the investment in silver is rather small considering the size of the Saudi fund, but it is nevertheless significant.

So far, the only other country to officially announce an increase in its silver reserves is the Russian Central Bank. Admittedly, they don’t have many other options due to sanctions. Last year, the Russian government announced plans to buy more than half a billion dollars worth of precious metals over the next three years.

At a panel discussion at the London Metal Exchange in 2024, the central banks of the Czech Republic, Mongolia and Mexico also discussed investing in silver. The Czech and Mongolian representatives said that silver is too volatile for central banks to use as a monetary metal. The Mexican central bank, on the other hand, holds silver in reserves. Mining is an important part of the Mexican economy, and Mexico is also the world’s largest silver producer.

Silver has already risen 40% this year

The price of silver reached a fresh 14-year record this week – the price of an ounce is currently trading at $40.6, and silver has increased in price by more than 40 percent this year.

In June, the silver market experienced a significant breakthrough – the 14-year resistance level of $34.5-36 was broken. Since then, the price of silver has risen by 13 percent.

Silver prices over the last 100 years

The physical silver market has been in a major deficit for five years in a row, with mine production falling short of demand. Industrial demand is growing, and silver is a crucial metal in many future technologies.

Given the strong fundamental picture and the significant improvement in the technical picture, silver could reach the $45-50 range this year. The previous records date back to 2011, when silver rose to $49.8 per ounce. There is a significant chance that these records will be tested this year.

Key Takeaways

The Saudi Central Bank’s $40 million move into silver ETFs may be small in the context of sovereign wealth, but it carries outsized symbolic weight. It highlights growing institutional interest in silver at a time when industrial demand is surging, supply deficits persist, and prices have already climbed more than 40% this year.

While Saudi Arabia’s investment appears to be more financial than strategic, focused on paper silver rather than physical reserves, it nevertheless reinforces silver’s re-emerging role as both an investment asset and a critical industrial metal.

With momentum building and technical barriers already broken, silver’s path toward the $45–50 range looks increasingly plausible, raising the prospect that the metal could soon revisit the historic highs of 2011.