Silver Today: The State of Silver and In-Depth Analysis of the Saudi Market

Silver today is considered a precious metal with high economic value and diverse uses, ranging from jewelry to advanced industrial applications. In the context of the Saudi financial market, silver is not traded as an independent asset or through a listed company on Tadawul, but its impact appears indirectly in sectors related to mining and industry. The Saudi riyal is pegged to the US dollar, making global silver prices (quoted in dollars) automatically influential on the local market. With Vision 2030 focusing on developing the mining sector, silver stands out as one of the targeted minerals for exploration and development. Saudi financial institutions have begun to consider offering investment products linked to silver, such as contracts or investment certificates, but most trading is conducted through global markets or international investment funds. Today, silver is seen as a major commodity within the basket of precious metals and holds weight in the decisions of investors and portfolio managers, especially with global price volatility and its impact on local industries and investment trends.

Silver prices in 2024 and 2025 experienced notable fluctuations due to various economic and geopolitical factors. At the start of 2024, silver prices ranged around $23–25 per ounce, gradually rising to $26–28 by year-end. With new mineral discoveries in Saudi Arabia at the beginning of 2025, prices surpassed $30 per ounce at times, peaking between $30 and $32 during the winter of 2025. This relative increase was supported by growing global industrial demand and clean energy trends, alongside Saudi Arabia's announcement of significant silver reserves. Converting to Saudi riyals (1 USD ≈ 3.75 SAR), the price per ounce ranged between approximately 100 and 120 SAR during the period, while the price per gram was about 3.8–4 SAR. It's important to note that prices change daily according to global metals exchanges, so it is advisable to follow real-time price platforms for the latest figures.

Saudi Arabia does not have an official market for trading silver as a commodity or independent financial instrument, but there are several ways to gain exposure to this metal. Individuals can invest in silver through global platforms that allow the purchase of futures contracts or exchange-traded funds (ETFs) tracking silver performance. Some Saudi financial institutions have begun exploring the issuance of investment products such as certificates linked to silver. On the consumption side, silver is sold in small quantities in jewelry and ornament shops, though local demand remains lower than that for gold. Industrial companies using silver in electronics or medical equipment typically import it from abroad. With recent discoveries of silver mines in Saudi Arabia, the landscape is expected to gradually change in the coming years, as the Kingdom moves to develop its mining capabilities and increase reliance on local resources.

Silver prices, both globally and locally, are affected by several economic, political, and technological factors. Key influences include global supply (especially from major producers like Mexico, China, and Peru), rising industrial demand in technology and renewable energy sectors, and interest rates and monetary policy from major central banks. Geopolitical crises such as trade disputes or wars often drive increased demand for precious metals as safe havens. At the same time, new mine discoveries or increased production can exert downward pressure on prices. In Saudi Arabia, any developments in mining policies or major discoveries, such as those announced in the Najran region at the end of 2025, are expected to have a direct impact on local supply and potentially on regional prices in the future. The US dollar exchange rate, as the global reference currency for metals, also plays an important role in determining the silver price in Saudi riyals.

Global silver production in 2024 reached about 820 million ounces, with demand at 775 million ounces, resulting in a slight market surplus. Production sources are concentrated in Latin America, China, and Russia. In Saudi Arabia, there was no significant production until the end of 2024, but with the announcement of major mine discoveries in Najran in late 2025, the Kingdom is expected to join the ranks of silver-producing countries in the coming years. Global silver consumption is distributed between industrial use (about 50%), jewelry (25%), and investment (25%). In Saudi Arabia, usage is concentrated in jewelry and some electronic and medical industries, but the volume remains relatively small compared to gold or copper. The development of the local mining sector will lead to increased silver consumption and its use in new sectors such as solar energy and electronics.

There is no stock or listed company in the Saudi financial market that directly represents silver as an asset. Silver's main impact is seen through major mining companies such as Ma’aden, which may include silver in their future portfolios in light of recent discoveries. Some Saudi banks also offer investment services for precious metals, including gold, and may expand their offerings to include silver in the future. The investment fund sector is considering launching silver-linked products to allow local investors to benefit from price movements. Nevertheless, investment in silver today remains limited and is mostly accessed through global markets or indirect instruments such as foreign ETFs or futures contracts.

The precious metals sector in Saudi Arabia is experiencing rapid growth thanks to Vision 2030 and significant government investments. Silver competes with gold, platinum, and palladium for investor attention, but stands out for its lower price and higher volatility. Saudi mining companies currently focus on gold, phosphate, and base metals, but recent silver discoveries open the door for its inclusion among extracted products. The main global competition in silver production comes from mines in Latin America and China, while the local market remains in a development phase. Government support and new regulations are expected to strengthen Saudi Arabia's position as a competitor in the regional and global silver market in the coming years.

In late 2025, Al Masane Al Kobra Mining Company (AMAK), in cooperation with the Saudi government and Aramco, announced the discovery of large silver reserves at a mine in the Najran region. This announcement marks a significant milestone in the Saudi mining sector and positions the Kingdom on the global silver production map in the future. At the same time, silver prices saw notable increases, supported by rising industrial demand and geopolitical tensions. Some Saudi banks have begun studying the issuance of investment certificates linked to silver, and there is growing interest from investment funds and local financial institutions in the precious metals sector. These developments reflect a strategic shift toward leveraging natural resources and achieving new economic and developmental gains.

Developing the silver sector in Saudi Arabia offers significant opportunities to diversify the economy and increase non-oil exports. With rising global demand for silver in renewable energy and electronics sectors, Saudi Arabia could become an important supplier in the regional and global market. On the other hand, challenges include global price volatility, mining technology, and the need to develop specialized national talent. Additionally, competition with major producing countries requires substantial investments in infrastructure and modern technologies. Continued government support and incentivizing regulations can play a pivotal role in overcoming these challenges and achieving sustainable economic returns.

Industrial demand accounts for about half of global silver consumption and is increasing with the advancement of technology and green energy industries. Silver is used in the manufacture of solar cells, precision electronic components, and medical equipment, making it a key element in the transition to a sustainable economy. In Saudi Arabia, as the country invests in solar energy and modern technologies, local demand for silver is expected to rise in the coming years. The Kingdom's entry into silver production will enhance its ability to meet this demand and create new opportunities for local and emerging industrial companies.

Despite the absence of an open local market for silver trading, Saudi investors have several ways to gain exposure to this metal. Investment is possible through opening international investment accounts and trading silver futures contracts or exchange-traded funds (ETFs) such as SLV. Some Saudi banks offer products linked to precious metals and may expand their services to include silver. Silver bars or jewelry can also be purchased from jewelry stores as an investment, although this does not offer high liquidity or ease of sale like financial instruments. Large industrial companies may benefit from rising silver prices by improving their financial performance if the market value of their silver inventories increases.

Investing in silver is characterized by higher volatility compared to gold, making it riskier, especially for individual investors. Influencing factors include rapid changes in supply and demand, new mine discoveries, and sudden shifts in economic or monetary policies. Additionally, silver price volatility can have direct effects on industrial sectors that depend on it, creating further challenges for local companies. Investors should note that silver is not as much of a safe haven as gold, and its price movements can be sudden and sharp. Therefore, risk management and consulting with professionals are always recommended before making any investment decisions.

With recent mineral discoveries and ambitious government plans to develop the mining sector, the outlook for silver in Saudi Arabia appears promising. New mining projects are expected to increase local production, create jobs, and support national industries. Silver will also provide a vital raw material for technology and energy sectors, enhancing Saudi Arabia's competitiveness in global markets. Achieving these goals, however, requires significant investment in infrastructure and talent development, along with the adoption of policies that encourage research and development. Continued government support and facilitation of investment procedures will be critical factors in shaping the future of silver in the Kingdom.