Gold Gains on Safe-Haven Demand Amid Tariff Concerns, Silver Strengthens on Industrial Growth – Heraeus
The comments below are an edited and abridged synopsis of an article by Ernest Hoffman, KITCO News
Gold and Silver Outlook: Safe-Haven Demand And Industrial Growth Fuel Market Momentum
Trade tariff uncertainties continue to support gold’s safe-haven appeal, while silver’s long-term demand benefits from 5G infrastructure expansion and industrial applications, according to Heraeus analysts.
Gold’s Safe-Haven Appeal Strengthens
Gold remains a top investment choice as market volatility and trade tensions persist. A significant development comes from China, where 10 major insurance firms have been authorized to invest up to 1% of their assets—equivalent to $27.4 billion—into bullion. This represents approximately 295 tonnes of gold, or 34% of total bar investment demand in 2024. If fully allocated, this could drive a 25% increase in investment demand in 2025, sustaining gold’s bullish momentum.
The Shanghai Gold Exchange has seen a trading volume surge, exceeding 44,000 tonnes in the past week—95% higher than typical weekly volumes over the past four years. This suggests that Chinese investors remain confident in gold, even as prices hit record highs.
Additionally, gold’s role in AI-driven industries is growing. Companies like DeepSeek are advancing AI model efficiency, fueling demand for GPUs, which require gold for production. In 2023 alone, NVIDIA shipped 3.7 million data center GPUs, consuming roughly 2 tonnes of gold. As AI expands into sectors such as automotive and robotics, demand for gold is expected to rise despite ongoing efficiency improvements.
Tariff Uncertainty And Economic Strength
While the Federal Reserve acknowledges economic resilience, it has not directly addressed trade tariff impacts. The uncertainty surrounding US trade policies adds to gold’s safe-haven demand. Despite short-term cooling after reaching a peak of US$2,941 per ounce, gold has rebounded to $2,900, demonstrating continued investor confidence.
Silver’s Industrial Demand Gains Momentum
Silver is benefiting from growing industrial applications, particularly in 5G infrastructure. While global smartphone sales grew 7% year-over-year in 2024, the real driver for silver is the increasing adoption of 5G technology. The share of 5G-enabled devices rose from 58% in 2023 to 64% in 2024, boosting demand for silver in antennas, transceivers, and base stations.
The 5G base station market, valued at $28 billion in 2024, is projected to grow fivefold to $140 billion by 2029. In 2025, silver demand across 5G-enabled sectors is estimated to reach 15–17 million ounces, with vehicle connectivity and semiconductor applications accounting for two-thirds of this total.
At the time of writing, silver remains volatile but continues its upward trend, last trading at $32.32 per ounce, up 0.54% on the daily chart.
Conclusion
Gold continues to attract strong investment amid economic and geopolitical uncertainties, while silver’s industrial demand—particularly from 5G technology—reinforces its long-term growth. As central banks, insurers, and tech industries drive demand, both metals are well-positioned for further price appreciation.