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JONGNO, SEOUL – The historic jewelry district of Jongno 3-ga is currently swept up in a "Silver Bar Fever." As gold prices hit stratospheric levels, investors are pivoting toward silver, driving a massive supply shortage and record-breaking price hikes.

The New "Star" of the Showcase
Walking through the jewelry street on January 6, the change is unmistakable. Once dominated by gold, shop windows are now plastered with stickers reading "Silver Bar Specialist." Many stores have installed dedicated showcases displaying 1,000g silver bars to meet the surging interest.

"Demand is overwhelming, but supply can't keep up," said Ban Chang-geun (52), CEO of ID Jewelry. "A year ago, a 1kg silver bar cost around 1.5 million KRW. Now, it's trading in the 5 million KRW range ($3,400+). Customers often have to wait one to two weeks to secure their orders."

Silver Outperforming Gold
According to the Korea Gold Exchange, silver was trading at $75.93 per ounce as of January 5, a nearly 2.5-fold increase from roughly $29.90 a year ago. This spike follows gold's recent record high of over $4,500 per ounce on the Singapore Exchange.

The demographic of buyers is also shifting. While gold is typically sold in smaller units like one or ten don (a traditional Korean unit equal to 3.75g), silver is increasingly being sold in large kilogram units. "A year ago, silver buyers accounted for only 20% of our traffic compared to gold. Now, it's nearly 80%," noted one shop owner.

The craze extends beyond bars to "silver granules"—small particles used in manufacturing—and even traditional silver spoons. Merchants report that people are holding onto their silver items, expecting even higher prices, rather than selling them back to the market.

Expert Outlook: Liquidity and Industrial Demand
Financial experts attribute this rally to global liquidity and industrial needs. Unlike gold, which is primarily a safe-haven asset, approximately 60% of silver demand comes from the manufacturing sector.

"In the early stages of a liquidity cycle, gold prices usually rise first, followed by silver and copper," explained Choi Jin-young, a researcher at Daishin Securities. "The upward trend for silver is likely to remain valid through the first half of 2026."

However, Choi cautioned that further gains in the latter half of the year may be limited depending on how much additional liquidity enters the market. For now, the "Silver Rush" shows no signs of cooling down in the heart of Seoul.

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