JB Insights
US designates silver as “critical mineral”, adds new layer of appeal to the white metal
The US Department of the Interior’s recent designation of silver as a “critical mineral” is more than a bureaucratic update; it signals a fundamental paradigm shift in how the white metal is valued, managed, and traded within the global economy. This strategic move, which places silver alongside copper and metallurgical coal, marks a decisive turn towards resource nationalism and industrial policy aimed at securing domestic supply chains. For global businesses and investors, this development fundamentally alters the risk-reward calculus for silver, transitioning it from a traditional store of value and jewellery material to a strategically critical industrial input.

The inclusion of silver reflects the evolution of the critical minerals doctrine, which has broadened its definition to emphasize the need for securing key resources domestically. By joining this exclusive category, silver will now directly influence federal review processes, including Section 232 tariff regulations, and guide federal support for domestic mining initiatives. This policy maneuver is a direct response to the US’s reliance on imports, which currently account for about two-thirds of its silver supply. The inherent danger of such a supply vulnerability—especially for a mineral essential to modern technological infrastructure—has spurred action, leading to anticipatory stockpiling and, in some cases, temporary shortages in global hubs like London. The core message is clear: US industrial policy will increasingly prioritize security over unfettered global supply, a stance that inherently restricts market flow.

Silver’s criticality is reinforced by its ubiquitous and irreplaceable applications in high-growth sectors, particularly electronics, solar panels, and electric vehicles (EVs). This robust, structural industrial demand distinguishes it from purely monetary metals. if silver is now viewed as a strategic metal with higher industrial demand, “supply constraints and strategic issues may support higher long-term prices.” The immediate consequence of the US policy will be a potential constraint on global supply. By incentivizing domestic mining and securing supply chains through policy measures, the US action effectively limits global availability, creating upward pressure on international pricing trends.

For investors, this structural shift adds a compelling new layer of appeal to the metal. Silver’s value proposition is no longer solely dependent on inflation hedging or discretionary jewellery demand; it is now underpinned by a geopolitical-industrial tailwind. As supply tightens and industrial demand accelerates—especially in large importing nations like India, where renewable energy and EV adoption are surging—the cost of imports is projected to rise. This confluence of global supply restriction and domestic demand growth creates a “double benefit” for local investors, validating silver’s investment case beyond typical cyclical considerations. The structural layer of appeal introduced by its critical mineral status thus transforms silver into a key asset for investors seeking exposure to both resource nationalism and the global energy transition.
In conclusion, the US designation of silver as a critical mineral is a watershed moment, signaling the metal’s transition into an essential component of national security and industrial future. This strategic policy intervention is a direct challenge to the previously free-flowing global supply chain, promising tighter market controls, incentivized domestic production, and higher long-term prices. For business leaders and investors, the imperative is to adapt to this new environment where geopolitics and industrial policy decisively intersect with commodity markets, recognizing silver not merely as a precious metal, but as a strategically vital input whose valuation is entering a new, structurally bullish phase.
Gold and silver ended lower on the week despite sharp intraday rebounds, with price action reflecting continued volatility and fragile positioning rather than a sustained recovery. In the absence of a definitive macro catalyst, a broad-based decline across equities and cryptocurrencies prompted investors to raise liquidity, briefly dragging gold below the key $5,000 per ounce threshold. Non-yielding assets came under pressure as earlier stronger-than-expected US employment data pushed expectations for the first Federal Reserve rate cut further into midyear, reducing the appeal of bullion. Sentiment shifted, however, after inflation data showed annual CPI slowing to 2.4% and core inflation easing to 2.5%, reviving dovish expectations. The softer inflation print weighed on Treasury yields and pressured the dollar, allowing gold to recover toward the $4,990 region. Silver experienced similar turbulence, sliding sharply during the liquidation phase before rebounding above $76 per ounce, though it remained on track for another weekly decline.

Gnanasekar Thiagarajan
Introduction:
Gold finished the period under pressure despite sharp rebounds, with price action dominated by cross-asset volatility and shifting rate expectations. After initially recovering more than 2% on softer-than-expected US inflation, bullion briefly pushed back toward the $5,000–$5,020 region as annual CPI slowed to 2.4% and core inflation eased to 2.5%, reinforcing expectations of multiple Federal Reserve rate cuts this year. Lower yields and a softer dollar provided near-term relief, reviving the structural appeal of non-yielding assets.
However, gains proved fragile as the dollar rebounded and gold slipped back below $5,020, underscoring hesitation around the psychological $5,000 threshold. Earlier strength in US labor data had already delayed expectations for the first rate cut toward midyear, capping upside momentum. Markets now await further guidance from FOMC minutes, GDP data and the core PCE print, while geopolitical developments — including renewed US-Iran nuclear talks and broader Middle East tensions — continue to shape safe-haven flows.
Silver tracked gold’s volatility but continued to underperform structurally, remaining in a corrective phase after January’s extreme surge. The metal rebounded nearly 3% on softer inflation data and firmer rate-cut expectations, briefly moving back above $76 per ounce, but gains faded as liquidity stayed thin amid China holidays and broader risk sentiment remained fragile. Heavy speculative positioning left silver exposed to sharp reversals, and prices are still far below late-January highs above $120 after the collapse toward the mid-$60s. While lower yields and debasement concerns offer underlying support, near-term trade points to consolidation rather than a swift return to the prior rally.
Gold and Silver:
Gold fell below $5,020 per ounce on Monday after rising more than 2% in the previous session, following weaker-than-expected US CPI data. The soft inflation print reinforced expectations for Federal Reserve rate cuts this year, with markets now pricing in slightly more than two reductions. Investors are awaiting the release of FOMC meeting minutes, the US GDP advance estimate, and PCE inflation data for further clues on the timing of the next rate cut. On the geopolitical front, traders are monitoring nuclear talks between the US and Iran, as well as US-led negotiations aimed at ending the war in Ukraine, both scheduled to resume on Tuesday. Developments in these areas could influence risk sentiment and safe-haven demand. Despite recent volatility, the precious metal remained supported by ongoing geopolitical uncertainty, strong central bank buying, and investor flight from sovereign bonds and currencies.
Silver March
Silver fell more than 1% toward $76 per ounce on Monday, reversing gains from the previous session, although trading volumes were subdued due to market holidays in the US, China and other countries. On Friday, the metal had jumped nearly 3% after soft US inflation data reinforced expectations that the Federal Reserve will cut interest rates later this year. Markets are currently pricing in a Fed rate cut in July, with a strong probability of a move in June. Investors now turn to the latest Fed minutes and the Fed-preferred core PCE price index report for further guidance on the US monetary outlook.
Meanwhile, mainland China’s markets are closed this week for the Lunar New Year holiday. Chinese traders had driven a speculative surge in precious metals in recent weeks, prompting authorities to curb market risks through various measures. Silver peaked above $120 an ounce in late January before falling to around $64 earlier this month as sentiment reversed.
Gold April
Technical View: $4996. Weekly chart shows a strong underlying uptrend with price holding well above the short-term moving averages and momentum expanding positively. The recent pullback appears corrective, with support seen near $4886/4878; holding above this zone keeps the broader structure intact for a move towards $5460. A decisive break below $4765 will be the first sign of deeper corrective pressure.
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