ChainThink report, March 11: BlackRock stated that despite recent heightened volatility in the precious metals market, the upward trend for gold and silver remains intact, as emerging demand is reshaping market structure.

Kristy Akullian, Head of Investment Strategy at BlackRock Americas iShares, noted that gold prices have risen approximately 75% over the past year and first surpassed the $5,000 per ounce threshold in January this year; silver has surged 148% in 2025 and gained an additional 19% in January. Although a pullback followed, the overarching bull market trend persists.

She identified key drivers behind the surge in precious metals: persistently rising global government debt, safe-haven demand fueled by geopolitical uncertainty, and growing industrial demand. U.S. federal debt now exceeds 120% of GDP, while major economies including Japan, the UK, France, and Canada all have debt levels exceeding 100% of GDP, enhancing the appeal of precious metals as stores of value.

On the demand side, central bank accumulation of gold has emerged as a critical catalyst. Data shows central banks hold around 20% of mined gold supply and have been steadily increasing their holdings from 2022 to 2025. In 2025, gold's share in global reserves first surpassed that of U.S. Treasury bonds.

Additionally, new buyer segments are emerging. For instance, stablecoin issuer Tether now holds approximately 140 metric tons of gold, making it one of the world’s top 33 largest gold reserve holders.

Regarding silver, BlackRock emphasized its close link to industrial applications, with about 60% of consumption originating from electronics, solar panels, and semiconductor industries. As data center construction accelerates, artificial intelligence compute demand grows, and electrification trends advance, industrial silver demand is expected to continue rising.

BlackRock believes that allocating both gold and silver within investment portfolios enables effective risk diversification: gold serves as a long-term store of value and defensive asset, while silver offers higher upside elasticity during economic expansions and industrial growth cycles.