Resource Nationalism: As Countries Stockpile Rare Earths and Gold, is Silver Next?
In September 2010, what began as a routine maritime patrol escalated into a geopolitical wake-up call. A Chinese fishing trawler collided with two Japanese Coast Guard vessels near the disputed Senkaku Islands in the East China Sea. Japan arrested the Chinese captain, triggering a diplomatic firestorm. But the real shock came not at sea, but in global supply chains.
In response to the arrest, China abruptly halted exports of rare earth minerals to Japan—materials essential for producing everything from electronics and electric vehicles to military technology.
Overnight, prices for rare earths like neodymium and dysprosium soared, and Japan—then one of the world’s largest importers of these minerals—was forced to confront a harsh reality: its high-tech economy was deeply dependent on a single major supplier—one that had just demonstrated its willingness to weaponise that control.
Rise of Resource Nationalism
Today, that same resource nationalism is spreading—not just for rare earths, but across a growing list of materials deemed “critical” to a nation’s resilience: bauxite, bismuth, boron, cobalt, copper, gallium, germanium, rare earth elements for permanent magnets, lithium, magnesium, manganese, graphite, nickel, platinum group metals, silicon, titanium and tungsten.
In yesterday’s media reports, the U.S. demonstrated its biggest pushback against China’s weaponisation of rare earths with the Pentagon becoming the largest shareholder in rare earth miner, MP Materials, which owns the only operational rare earth mine in the U.S1. The Pentagon also agreed to purchase 100% of the magnets produced at the company’s new facility, following its construction over the next 10 years.
Earlier this month, it was reported that the European Union (EU) plans to stockpile critical minerals due to geopolitical risks driven by “increased activity” from hacktivists, cybercriminals, state-sponsored groups and potential armed aggression against EU countries2.
Having first-hand experience with the Chinese rare earth embargo over a territorial dispute in 2010, Japan has since invested heavily in non-China rare-earth projects to reduce its dependence on Chinese rare earth imports.
It was also reported in July that Japan plans to begin test mining for rare earth minerals—like neodymium and dysprosium—on the ocean floor in early 20263. Neodymium and dysprosium are key components in the permanent magnets used in electric vehicle (EV) motors and various high-tech products. These rare earth elements are especially critical to Japan’s globally competitive automotive industry.
In April, Australia, which is home to some of the world’s largest critical mineral deposits, also announced plans to stockpile critical minerals with an initial investment of A$1.2 billion from the government4. Mainly positioned as a strategy to build the country’s resilience amid growing global tensions, the government also signalled that the stockpile could be a bargaining chip in tariff negotiations with US President Trump.
India, having the world’s third-largest rare earth reserves, is also moving aggressively to secure its supply of rare earth minerals, reflecting growing global urgency around resource independence. In 2025, the Indian government announced a scheme worth approximately $600 million to boost domestic rare earth production, alongside a broader $1.88 billion National Critical Minerals Mission aimed at exploration, recycling, and stockpiling5. These efforts intensified after China imposed export restrictions on rare earths, which rattled India’s EV and electronics sectors.
Rare earth elements are not only vital to green technologies and consumer electronics—they are also indispensable in the production of advanced military systems, including precision-guided missiles, radar, stealth aircraft, and electronic warfare systems. As geopolitical tensions rise, countries are increasingly treating rare earths not just as economic inputs but as strategic enablers of military and technological superiority.
The growing trend of nations building rare earth stockpiles—often led by state-backed initiatives or public sector undertakings—is emerging as a quiet arms race, where control over physical resources directly influences global power dynamics. This stockpiling race underscores a deeper truth: strategic physical assets often underpin geopolitical outcomes.
Central Banks are Stockpiling Gold
Just as rare earths serve as a foundation for national security, central banks are also stockpiling gold for financial security, having added over 1,000 tonnes of gold annually between 2022 and 2024.
These purchases are not random market plays—they are deliberate strategic moves. Much like rare earth stockpiles, gold reserves provide a layer of sovereign control over economic stability, particularly during times of crisis, sanctions, or currency volatility.
Key findings in the 2025 Central Bank Gold Reserves Survey show how central bankers are aware of gold’s performance during crises and their intention to continue growing their gold reserves.
This shift is particularly pronounced among emerging economies and countries seeking to reduce their reliance on the U.S. dollar. Nations such as China, India, Turkey, Poland and Russia have significantly increased their gold holdings to diversify away from dollar-denominated assets and strengthen their financial autonomy.
In a world where economic warfare is becoming more common—through sanctions, asset freezes, or exclusion from SWIFT—gold is a politically neutral asset that is not tied to any one nation’s financial system. It is universally recognised, cannot be digitally frozen, and requires no counterparty trust, making it the financial equivalent of a strategic reserve.
In this light, central bank gold reserves are to monetary policy what rare earth reserves are to national defence—tangible, uncorrelated assets that underpin resilience and sovereignty. This pattern of institutional behaviour underscores a broader truth: physical assets—whether minerals or metals—offer stability when digital and paper promises falter. And just as governments hedge with gold, individuals, too, can turn to precious metals to protect their wealth from inflation, currency debasement, and systemic shocks.
A Rush to Stockpile Silver Next?
Silver is both a monetary and industrial metal, yet it remains conspicuously absent from the high-profile national stockpiling efforts that surround gold and rare earth elements.
While central banks have made global headlines for aggressively accumulating gold, and countries like China and the U.S. have taken steps to secure rare earth supplies critical for military and green technologies, silver has yet to see the same level of overt strategic accumulation.
Historically, silver has been crucial to national defence. During World War II, the U.S. Treasury loaned a staggering 14,700 tons of silver to the Manhattan Project to build the electromagnetic coils needed for uranium enrichment6—an early example of silver being treated as a strategic military resource.
There are currently no major sovereign silver reserves or routine central bank purchases, making it an underappreciated asset in national resource strategies, despite its indispensable role in energy, electronics, and defence industries.
That may be beginning to change. In 2024, Russia’s Interfax reported that the Russian draft federal budget outlined plans to acquire silver for its reserves for the first time, along with platinum and palladium7.
At the same time, data from World Bank WITS-Comtrade reports8 show that China is purchasing large volumes of silver directly from South American producers such as Peru. Analysts suggest that China’s quiet stockpiling through unofficial channels enables it to purchase silver without affecting the silver spot market.
These actions echo the early stages of the rare earths race, where state actors initially moved quietly to secure supply chains before the geopolitical implications became more apparent to the world.
Regardless of whether silver is considered a strategic or critical metal today, its usefulness in industrial and military applications makes it a potential resource to be hoarded by countries should international trust and cooperation break down. Like the aforementioned silver’s role in the Manhattan Project, silver was selected because of its excellent electrical conductivity and its exclusion from the country’s list of critical war materials.
Just like rare earths, silver is used in precision weaponry, advanced electronics, and battlefield energy systems. As industrial and military demand for silver surges amid tightening global supply, the stage is set for governments to recognise what some already suspect: silver could be the next metal that nations rush to stockpile in the race for technological and geopolitical dominance.
Are You Hedging Your Wealth Like Nations Do?
As governments around the world quietly accumulate strategic resources—from rare earths critical to defence systems, to gold and increasingly silver for financial security—it becomes clear that these tangible assets are more than just commodities; they are instruments of power, resilience, and long-term value.
Central banks are not making these moves by accident. They are preparing for a world where geopolitical tensions, currency volatility, and systemic risks could drastically reshape the global financial landscape. If nations are hedging with hard assets to secure their future, individual investors would be wise to take note.
This is your signal to act.
Physical gold and silver offer a time-tested way to preserve wealth outside the financial system—free from counterparty risk and inflationary erosion. While governments build vaults of bullion to safeguard national interests, you can also build personal financial resilience by owning physical precious metals. Whether it's a few ounces or a diversified allocation, now is the time to take your cue from the world’s most powerful players and fortify your wealth with assets that have stood the test of empires, wars, and crises.
Buy gold, silver and platinum bullion and accumulate these strategic metals today. Apply for a verified S.T.A.R. Account online to store bullion with us in Singapore.
References:
5 https://www.mining.com/web/india-approves-1-88bn-to-develop-critical-minerals-sector/
6 https://www.osti.gov/opennet/manhattan-project-history/Places/OakRidge/oak-ridge-y12-silver.html
7 https://www.interfax.ru/business/984423