BlackRock: Gold and Silver Bull Market Far From Over, New Demand Reshaping Market

BlockBeats News, March 11th - BlackRock stated that despite the recent increased volatility in the precious metals market, the upward trend of gold and silver is not over yet, with emerging demand reshaping the market structure.

BlackRock Americas iShares Investment Strategy Head Kristy Akullian pointed out that in the past year, the price of gold has risen by about 75%, breaking the $5000 per ounce mark for the first time in January this year, and silver has risen by 148% in 2025, with an additional 19% increase in January this year. Despite subsequent pullbacks, the overall bull market trend is still ongoing.

She believes that the main factors driving the rise in precious metals include: the continuous increase in global government debt, the hedging demand brought about by geopolitical uncertainties, and the growth in industrial demand. The current U.S. federal debt has exceeded 120% of GDP, and the debt levels of major economies such as Japan, the UK, France, and Canada generally exceed 100% of GDP, enhancing the attractiveness of precious metals as a store of value.

On the demand side, central banks around the world continuing to increase their holdings of gold has also become a key driver. Data shows that global central banks hold about 20% of the mined gold reserves and will continue to increase their holdings from 2022 to 2025. By 2025, the share of gold in global reserves has exceeded U.S. Treasury bonds for the first time.

In addition, a new type of buyer group is emerging. For example, stablecoin issuer Tether holds about 140 tons of gold, becoming one of the top 33 gold reserve holders globally.

Regarding silver, BlackRock pointed out that its demand is closely related to industrial use, with about 60% of consumption coming from the electronics, solar panel, and semiconductor industries. With the growth in data center construction, demand for AI computing power, and the trend of electrification, silver's industrial demand is expected to continue to rise.

BlackRock believes that allocating both gold and silver in a portfolio can achieve risk diversification: gold can serve as a long-term store of value and a defensive asset, while silver can provide higher upside resilience during economic expansion and industrial growth cycles.