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Jewelry Expert: High Demand for Silver Driven by Its Affordability


Gold Prices

Mon 20 May 2024 | 10:31 PM
Waleed Farouk

Silver prices have increased in local markets as the ounce rose on the global stock market, reaching its highest level in 11 years.

According to Mohammad Ali El-Sharif, an expert in precious metals markets, silver prices in local markets are around 1.5EGP, making the price of a gram of 999 silver approximately 4.5EGP. Meanwhile, an ounce on the global stock market rose by about $31.88, marking the highest level since December 2012.

In the same context, El-Sherif explained that high inflation rates in the Egyptian market have changed citizens' purchasing behaviors.

"Many Egyptians are now turning to safe havens such as gold and real estate to hedge against the continuing decline of the currency. The decline in purchasing power and the rise in gold and real estate prices have led to an increased interest in silver as a hedge, resulting in growing demand for it in the Egyptian market," he said.

El Sharif noted that silver prices have risen by 32%, outperforming gold and becoming one of the best performing major commodities. This rise has been driven by stronger investment and industrial demand.

The jewelry expert added that silver is both a financial asset and a store of value, and it is a crucial component in the solar panel industry, which is experiencing significant growth. "The relatively low prices of silver compared to gold have led to a large percentage of global demand, especially with the rise in gold prices and the decline in purchasing power due to inflation rates."

Notably, silver has risen by more than a quarter this year, outperforming gold. However, in relative terms, silver is still inexpensive, as an ounce of gold is equal to about 80 ounces of silver. The difference between them is expected to decrease until an ounce of gold is equal to about 70 ounces of silver.

Contributed by Ahmed Emam