Time To Buy Silver? 'Poor Man's Gold' Shines As Dollar Sags Amid Tariff War

Silver, often referred to as the 'poor man's gold', is emerging as a standout performer in the commodities market this year, with growing investor interest amid rising geopolitical tensions and economic uncertainty.

As US President Donald Trump challenges the global trade order, the resulting demand for safe-haven assets has driven significant price action in precious metals—especially silver.

"Silver is here to stay as a high pick," Peter McGuire, chief executive officer of XM Australia, told NDTV Profit.

Spot silver has surged about 17% since the beginning of the year, placing it among the best-performing commodities, according to Bloomberg. Meanwhile, the metal's futures in New York have posted even stronger gains, highlighting a rare pricing dislocation between global markets.

"We have seen a massive under-investment in the silver market for past two decades," McGuire highlighted, adding that silver is now "going to take off" and many investors are raising their bet on the metal.

"I think this precious metal, for the rest of 2025, is going to be a very dynamic market."

Gold, too, has soared to record highs, crossing $3,390 an ounce on Monday as the US dollar weakened to levels not seen since late 2023. The rally has been fuelled by criticism of the US Federal Reserve, a weakening dollar, and ongoing trade tensions—all of which have intensified the appeal of safe-haven assets, as per Bloomberg.

Back home, silver futures jumped Rs 619 to Rs 95,656 per kilogram on Monday as traders increased their positions. On the Multi Commodity Exchange, silver contracts for May delivery rose 0.65% in a trading volume of 14,898 lots.

Spot gold surged as much as 2.04% to touch $3,394.60 an ounce. Silver reversed an early drop to push 0.98% higher. 

Trump tariffs are the "unknown that we face", McGuire said. There are 70-80 countries that have formed some kind of negotiations with the Trump administration, he pointed out.

Copper is a "cheap buy", he said, while adding that there is going to be an increase in demand in the copper market for the rest of this decade.

"I think precious metals is the place to be. There is going to be a considerable upside for these markets," McGuire said. "The global demand for these metals are going to increase."