Silver has become difficult to find in Dubai’s market — traders say stocks are exhausted and buyers are willing to pay extra just to secure the metal. The demand in the UAE has surged and this has pushed investors to pay premiums of up to Dh2,000 per kg over the market rate.
At the time of writing this Khaleej Times report, the market price of silver in Dubai was around Dh16,600 per kg. However, traders said that the physical silver bars are unavailable, and when they do appear, they are quickly bought and often at a higher price.
“Silver is not available in the market right now,” said Ammar Akrami, from Al Manar Gold and Diamonds. “We are getting regular enquiries, but physical stock is exhausted. Some buyers are ready to pay around Dh2,000 more per kg just to secure the metal.”
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He said the shortage is being felt across the market, especially among retail investors who traditionally see silver as a more affordable alternative to gold. “People are not asking about quantity anymore. If silver is available, they want to buy it immediately,” Akrami added.
Raji Swaminathan, a salesman working at Dubai Gold Souk, said that their company ran out of stock last week and is still waiting for confirmation from suppliers. “We exhausted our silver stock expecting fresh supply, but our supplier has not yet guaranteed delivery,” he said.
“We receive calls every day from customers asking if silver has arrived,” added Raji.
He also said that buyers are ready to pay more. “Some investors have agreed to pay a premium of up to Dh1,500 per kg over the spot price. They don’t want to miss the opportunity, even if it means paying extra,” he said.
Market players said the rush is being driven by a mix of investment demand and concerns over availability.
Aasim Damudi, founder of Gold and Gems Gallery, said silver demand has reached levels he has not seen before. “Silver is in peak demand right now. We have not seen this kind of interest earlier,” he said. “Prices are increasing almost every day.”
Damudi said that investor interest picked up sharply when silver crossed Dh9,000 per kilogram a few days ago. “When the price reached Dh9,000, many people started investing in the metal. Since then, demand has only grown stronger,” he said.
He added that silver is attracting both first-time investors and those looking to invest beyond gold. “People see silver as a long-term investment, and the current shortage has added urgency,” said Damudi.
Traders said while premiums may ease once supply improves, demand remains strong for now. “As long as physical silver remains hard to source, buyers will continue to pay extra,” said Akrami.
