Banks Halt Silver Bar Sales Amid Surging Demand

Major banks in South Korea have suspended the sale of silver bars as demand soars amid global economic uncertainty. Institutions such as KB Kookmin Bank, Shinhan Bank, Woori Bank, and NH NongHyup Bank have halted silver sales due to supply shortages, reflecting a growing investor rush toward precious metals.

Why Is Silver Demand Rising?

The surge in demand is driven by multiple factors:

• Economic Uncertainty – Concerns over inflation, interest rates, and global trade tensions are pushing investors toward safe-haven assets like silver.
• Tariff Threats – Recent tariff warnings from U.S. President Donald Trump have increased market instability, encouraging more silver purchases.
• Industrial Demand – Silver’s essential role in green energy, electronics, and electric vehicles adds long-term value, making it attractive to investors.
• Supply Constraints – The Silver Institute has reported ongoing global deficits in silver production, contributing to shortages and price increases.

A Global Trend

This phenomenon isn’t limited to South Korea. In Australia, the Perth Mint has reported fluctuations in bullion sales, reflecting broader market trends. Similar surges in silver buying have been observed in the U.S. and Europe as investors seek security in physical assets.

What It Means for Investors

With demand outpacing supply, silver prices could continue rising. Investors should be mindful of potential premiums on physical silver and consider market conditions before making purchasing decisions. As economic uncertainties persist, silver’s appeal as a store of value remains strong.

This suspension highlights the volatility of the precious metals market and reinforces silver’s role as both an investment and an industrial commodity.