Physical gold and silver gain momentum — including via stablecoins

The precious metals market is undergoing a structural shift. Long dominated by paper products and financial instruments, it is increasingly moving toward physical ownership. This transition is driven by two parallel forces: the structural re-rating of silver and the rise of gold-backed stablecoins as an additional source of demand for physical gold.

 

Silver: from overlooked to essential

Silver has moved firmly above 60 dollars per ounce, reaching a historic level. A portion of potential buyers remains on the sidelines, while short-term capital is also beginning to enter the market.

This move is not driven by hype, but by underlying market fundamentals.

 

Silver fundamentals

Global silver demand is at historically high levels. Solar installations continue to set records, supported by electrification and data-center expansion. Electric vehicles require significantly more silver than internal combustion vehicles. Demand from AI, 5G, and semiconductor applications continues to grow steadily.

Medical and industrial uses together account for roughly 60% of total global demand.

On the supply side, mining investment remains subdued. Since silver is primarily produced as a by-product, supply cannot be quickly increased. Global production has declined in recent years.

Since 2019, cumulative deficits have led to a sustained drawdown in global inventories.

 

Gold: a new buyer emerges

Alongside central banks and traditional investors, a third demand component is gaining relevance: gold-backed stablecoins. These crypto-assets track the price of gold and are intended to be supported by physical gold reserves.

 

What are stablecoins?

Stablecoins are crypto-assets designed to track a relatively stable reference value, such as a currency or gold. Gold-backed stablecoins function as a digital analogue to a gold tracker, with value linked to physical metal.

As adoption grows, this segment can translate into additional demand for physical gold, independent of ETFs and traditional financial markets.

 

Monetary policy

In environments characterized by rate cuts and rising liquidity, precious metals often benefit from additional support. Markets closely monitor signals of accommodative monetary policy.

 

Conclusion

The common link between silver and gold-backed stablecoins is the renewed focus on physical metal. Silver is becoming increasingly strategic for industrial applications, while stablecoins add an additional layer of demand for physical gold.

Ownership of physical gold and silver exists outside financial structures, counterparties, and digital systems. Physical metal is not a promise, but a tangible asset over which the owner retains full discretion.

In a financial environment that continues to grow in complexity, this form of independent ownership regains relevance.