They act as market makers, facilitating massive over-the-counter (OTC) trades for high-net-worth clients and corporations.
Central banks are the most prominent institutional buyers of precious metals. While they overwhelmingly favor gold as an official reserve asset, some do hold silver to: do banks buy silver
Banks often act as custodians for physical silver that backs Silver ETFs (Exchange-Traded Funds). For example, silver in the iShares Silver Trust (SLV) is physically held in secure bank vaults. They act as market makers
Large commercial "bullion banks" (such as JPMorgan Chase and HSBC) are heavily involved in the silver market: do banks buy silver
Silver serves as a long-term store of value during economic instability.
To reduce reliance on single fiat currencies like the U.S. dollar.