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It should be called "The Reserve": The company builds a safe for 15,000 tons of silver

2021-04-12T12:50:05.071Z

Hoping for silver prices to rise, an investor in Singapore is building a huge high-security warehouse for silver bars worth 10 billion euros. It should be called "The Reserve".



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Silver bars

Photo: Roland Weihrauch / dpa

Do the courses go crazy first, and then the investors?

At least that's how this plan by a company in Singapore works.

After speculators had in the meantime chased the silver price up, a silver dealer named Silver Bullion is apparently betting on a long-term run on the precious metal.

As reported by the Bloomberg news agency, the company is currently building a kind of huge safe for large quantities of the precious metal near the airport in Singapore: a high-security warehouse for up to 15,000 tons of silver.

To put it into perspective: One kilogram currently costs around 670 euros.

The total capacity of the planned facility would therefore be sufficient to bunker silver worth around 10 billion euros.

Growing need for silver in industry

"Bloomberg" quotes Gregor Gregersen, founder of Silver Bullion, that he was looking for larger storage capacities a few years ago.

Now he has decided to build such a facility himself, "a real cult building".

He wanted to call it "The Reserve", probably referring to the US Federal Reserve.

Silver has risen more than 50 percent over the past twelve months.

At the beginning of the year there were violent price fluctuations that made international headlines.

According to »Bloomberg«, other retailers are building up additional storage capacities in addition to Gregersen.

The dealer JM Bullion is planning to open a new large warehouse in the US city of Dallas with an area of ​​more than 2000 square meters.

In March, the amount of silver bunkered in London warehouses rose 11 percent.

Experts assume that there will be higher demand for the metal in the medium term, partly because silver is required in the manufacture of solar cells.

Analysts such as Philip Klapwijk from the consulting firm Precious Metals Insights expect prices to rise in the coming years, primarily because of the industrial use of silver.

trembling

Source: spiegel

All business articles on 2021-04-12

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