Local silver prices mirrored the global downturn, driven by a 6.2% decline in the silver ounce price, which approached a recent high of $35 in late October. This drop was also influenced by falling returns on U.S. Treasury bonds, which prevented even larger declines in silver prices.
The report highlighted a one-pound decrease in local silver prices, with 800 silver alloy starting the week at 43 EGP per gram and closing at 42 EGP. In contrast, global silver prices dropped by approximately $1.14, opening at $32.42 per ounce and closing at $31.28.
According to the report, 999 silver recorded 52.50 EGP per gram, while 925 silver reached 48.50 EGP per gram, with a silver pound valued at 420 EGP.
The decline in local silver prices, the report explained, is attributed to a 6.2% dip in silver ounces globally. Prices had been nearing previous highs around $35 in late October. Additionally, reduced returns on U.S. Treasury bonds have helped moderate further declines in silver.
The report also pointed out that silver has outpaced gold this year, with a rise of more than 47% since the beginning of 2024. Silver’s peak was last recorded in October 2012 at $35.40 per ounce, with projections suggesting prices could soon reach between $35 and $40 per ounce.
The report noted an increase in the gold-to-silver price ratio from a recent low of just under 79 to around 84 and forecasts a drop in this ratio over the next twelve months to the mid-70s. This shift suggests that silver could outperform gold in the near future.
Swiss bank UBS remarked on the historic correlation between gold and silver prices, stating that since July 2020, the gold-to-silver ratio has largely remained within the 75-90 range. Notably, in Q4 2022, both silver and gold prices rose nearly 70%.
UBS also noted that gold will likely continue to serve as a primary hedge against risk, which in turn could benefit silver. Silver is set to experience rising industrial demand, positioning it as a strong investment.
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