ChainThink reports that on March 11, BlackRock stated that despite increased volatility in the precious metals market recently, the upward trends in gold and silver are not over, as emerging demand is reshaping market structures.
Kristy Akullian, Head of Investment Strategy for iShares Americas at BlackRock, noted that gold prices rose approximately 75% over the past year and surpassed the $5,000 per ounce mark for the first time in January this year; silver rose 148% in 2025 and added another 19% in January this year. Despite subsequent pullbacks, the overall bull trend continues.
She believes the main factors driving the rise in precious metals include: the continuous increase in global government debt, safe-haven demand stemming from geopolitical uncertainty, and growing industrial demand. U.S. federal debt has now surpassed 120% of GDP, and major economies such as Japan, the UK, France, and Canada also commonly have debt levels exceeding 100% of GDP, enhancing the appeal of precious metals as a store of value.
On the demand side, continuous gold purchases by central banks around the world have become a key driver. Data shows that global central banks hold approximately 20% of all mined gold reserves and have consistently increased their holdings from 2022 to 2025. In 2025, gold’s share of global reserves surpassed that of U.S. Treasuries for the first time.
Additionally, a new group of buyers is emerging. For example, the stablecoin issuer Tether has acquired approximately 140 tons of gold, becoming one of the world’s 33 largest gold reserve holders.
For silver, BlackRock notes that demand is closely tied to industrial applications, with approximately 60% of consumption coming from sectors such as electronics, solar panels, and semiconductors. As data center construction, artificial intelligence computing demand, and electrification trends continue to grow, industrial demand for silver is expected to rise steadily.
BlackRock believes that allocating to both gold and silver in a portfolio achieves diversification: gold serves as a long-term store of value and defensive asset, while silver offers greater upside potential during periods of economic expansion and industrial growth.