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Tue, Nov 11, 2025 | Jumada al-Awwal 20, 1447 | Fajr 05:13 | DXB 
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'Dh2,700 profit in silver': UAE investors cash in on metal cheaper than gold
With its lower cost compared to gold and growing industrial use, silver is attracting both small and large investors in the UAE
Ashraf Malik, a businessman and trader based in Dubai, has been investing in gold for years. But recently, he decided to try something different, invest in silver. On September 1 this year, Malik purchased two kilograms of silver when price was around Dh4,807 per kilogram, spending a total of Dh9,614.
Just over six weeks later, on October 20, silver prices climbed to about Dh6,192 per kilogram. Malik sold his investment for Dh12,384, making a profit of Dh2,770, nearly 30 per cent in less than two months.
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"I didn’t expect such a quick rise,” said Malik. “I was planning to hold longer, but when I saw how fast prices were going up, I decided to sell. It's not a huge investment, but the returns were good enough to show silver can really be rewarding.”
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On October 13, Khaleej Times reported that silver prices had outshone gold this year, and analysts predicted the trend could continue in the near to medium term. Gold prices had gained over 52 per cent year-to-date, rising from $2,659 per ounce at the end of last year to $4,017.18 in October. Silver, however, jumped from $28.78 per ounce last year to nearly $50, recording a massive increase of more than 73 per cent during the same period.
With its lower cost compared to gold and growing industrial use, silver is attracting both small and large investors in the UAE.
'Surge in demand'
Retailers in the UAE said the interest in silver has grown steadily in recent months.
“Yes, there has been a massive increase in silver buyers as prices have continued to rise in recent days,” said Chintan Patni, senior manager at Jewel Trading. “During Diwali, the demand was so high that the market even faced temporary shortages.”
Vivek J, retail head at Malabar Gold and Diamonds said that the demand for silver is increasing slowly. “We can see how prices have been rising, and for many investors, silver has become the preferred choice for a secure investment. But it’s not that people have stopped investing in gold, that demand is still strong.”
“Silver is simply emerging as an alternative for those who want to diversify their portfolio or start with smaller investments. If you look at the longer run, say over the next five years, those investing in silver today can expect to see good profits,” added Vivek.
From ornaments to technology
Silver, once seen mainly as a precious metal for jewellery and ornaments, is now playing a much larger role in technology and industry.
“At one point, silver was only used for ornaments. Now, it’s used in AI, tech, solar panels, and electronic gadgets. It has become a utility metal. Its usage is increasing while supply is stagnant, which makes further price increases likely,” said Patni.
Patni added that both gold and silver have historically risen in value, but the proportionate increase in silver this year has been far greater. “During Diwali, silver touched around $55 per ounce before a small correction, which is normal. Looking ahead, forecasts are still strong, and we are seeing investors at both small and large levels turning to silver as an additional investment.”
SM Ayaz Zakir
SM Ayaz Zakir is a Senior Correspondent with a flair for extraordinary stories. His playground? Every corner of the UAE. He often ventures into remote corners of the country to capture compelling news and human interest stories.
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