For decades, silver was practically insignificant for central banks. While gold was hoarded as the “ultimate currency reserve”, silver was considered at most an industrial metal – but not a monetary asset. This view is currently undergoing a fundamental change: Russia and Saudi Arabia began adding silver to their official reserves.
This broke a taboo and started a trend that has the potential to permanently change the silver market.
Russia: Breaking the taboo in fall 2024
In September 2024, the Russian central bank (Bank Rossii) announced that it would increase its reserves not only with gold and platinum, but also with silver for the first time in decades. Investments totaling around 51 billion rubles (approx. $535 million USD) are planned over a period of 3 years.
The official reason given was that the bank wanted to become less dependent on Western financial structures and reduce its dependence on the US Dollar. Russia is thus signaling that silver is no longer considered merely a “secondary metal,” but rather a strategic component of its currency reserves.
This was a bombshell for the global silver market: For the first time since the 1990s, a major central bank is officially including silver in its balance sheet.
Saudi Arabia: A signal against Dollar dominance
Just a few months later, Saudi Arabia followed suit – causing even more of a stir. The kingdom, traditionally closely linked to the US Dollar, made its first significant purchase of silver.
In 2025, the Saudi Central Bank (SAMA) invested not only in US securities, but also specifically in silver – primarily through the world’s largest silver fund, the iShares Silver Trust (SLV).
These investments are geopolitically explosive: Saudi Arabia is signaling that it no longer relies exclusively on the US Dollar, but also considers precious metals to be strategic insurance.
Silver: High-tech metal and critical resource
Silver is not only a “money metal,” but also one of the most important high-tech metals. It is irreplaceable in key industries such as:
- Photovoltaics (solar cells)
- Electric mobility
- Semiconductor and electronics production
There is also a security policy dimension: Silver is also used in defense technologies such as drones, missiles, and precision weapons – and cannot be technically substituted in these areas.
This strategic importance has not gone unnoticed in the US: At the end of August 2025, silver was included in the list of critical minerals for the first time.
Washington thus classifies silver as essential for national security – a step that could also lead to export controls or production incentives in the future.
Why silver now? The gold-silver ratio and geopolitical risks
Two reasons stand out:
- Gold-silver ratio: With values above 85, silver was historically undervalued compared to gold. This opened up an opportunity for central banks to diversify their reserves at a low cost.
- Geopolitical risks: Countries that previously parked large surpluses in US government bonds are looking for alternatives to reduce their dependence on the US Dollar. Silver offers not only monetary stability, but also industrial and military relevance.
Expert assessments from Elementum International
Some board members and the CEO of Elementum International AG clearly view the latest developments as a historic turning point:
"Gold and silver have served as commodity money ("Sachgeld") for centuries, even alongside each other. Some countries demonetized silver and switched to a pure gold standard before turning to a pure paper money system that they could easily manipulate and simply print. The purchase of silver as a monetary reserve by central banks is therefore a natural step. Silver is not only an industrial metal, but also a good form of money."
“Recent purchases by central banks show that silver is once again being perceived as a strategic reserve asset. For the market, this means sustained demand that goes far beyond speculative movements.”
“The value of all above-ground silver reserves is significantly lower than that of gold. If central banks act as buyers here, even with relatively small amounts, this should further strengthen the upward price trend.”
"The major difference between ETFs such as the SLV and physical storage at Elementum International AG lies in ownership. An ETF share is a financial product – not direct ownership. With us, the bars belong 100% to the customer, outside of any bank balance sheet, legally unassailable and deliverable at any time. This is precisely what makes physical storage superior: It creates sovereignty and security that no paper product can offer."
Institutional demand fuels the trend
The central banks of Russia and Saudi Arabia are just the tip of the iceberg. Institutional investors worldwide are also increasing their allocations to silver – whether through funds, ETFs, or physical storage.
The new demand profile – central banks + institutional investors – is fundamentally changing the market. As a result, silver is once again becoming a monetary asset with geopolitical and security policy dimensions.
Silver with Elementum: Physical, secure, tax-free
While fund shares always carry counterparty risks, only physical silver offers true ownership. Elementum makes this possible:
- Physical ownership: Your silver is 100% yours.
- Duty-free storage: In Switzerland in high-security storage facilities – tax-free and secure.
- Maximum security: Bulletproof and explosion-proof vault facilities, insurance coverage, and independent audits.
- Flexibility: Resale or exchange for gold at any time – quick and easy.
- Get started from as little as €50: With Argentum Premium, you invest like a major investor in fractions of 15 kg bars.
Conclusion: A geopolitical turning point
Russia and Saudi Arabia have shown that silver is making a comeback in monetary policy. The US classifies it as a critical mineral, while industry urgently needs it – from solar cells to rockets.
This makes silver more than ever a strategic asset, a high-tech metal, and a security resource.
This opens up a rare opportunity for investors: Participation in an epoch-making paradigm shift that reestablishes silver as real money.
Seize the moment – with Elementum in Switzerland: Physical, tax-free, highly secure.
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
Secure your storage space now – free of charge and without obligation
Register now for a storage space in the St. Gotthard high-security vaulting facility and receive free access to:
- our General Terms and Conditions (GTC)
- current fee tables
- annual audit reports from the auditing company BDO AG
- transparent proof of use of funds
- family discount information
- the popular children’s program “Schatz4Kids” (“Treasure4Kids”)
- as well as numerous other documents and information on storage, purchase, and resale, as well as the ratio “switching” strategy.
Register now: https://silberbar.elementum.de/
Tip for discounted entry: Enter the promotional code “50” (“Aktionscode“) and the “Vermittler” number 1000166 when registering to receive a 50% discount on the storage space setup fee.
Important: Registration is non-binding and does not commit you to anything – but it is your first step towards an independent and crisis-proof precious metal investment.
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions—for your security, your assets, and your future.
About the Author
Stephan Bogner
CEO of Elementum International AG
Stephan Bogner, who holds a degree in business administration, studied economics at ISM Dortmund (Germany) and wrote the university’s first thesis on precious metals as a hedge against inflation. After studying in the UK and Australia and gaining professional experience in Dubai, he took over as CEO of Elementum International AG in Switzerland in 2012. His expertise in precious metals has had a significant impact on the company’s development.
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results.
