Investment for the Poor... Silver Attracts New Segments in the Egyptian Market

Silver prices rose in local markets by 1.6% during last week's trading, with the ounce on the global stock exchange rising by 3.7%, due to increased industrial demand and the effects of geopolitical tensions.

Silver prices rose in local markets by EGP 0.75 during last week's trading, with the price of a gram of 800-karat silver opening at EGP 46.50 and closing at EGP 47.25. Meanwhile, the price of an ounce on the global stock exchange rose by $1.2, opening at $32.26 and closing at $33.45.

The price of a gram of 999-karat silver reached EGP 59, while the price of a gram of 925-karat silver reached EGP 54.50, while the silver pound (925-karat) reached EGP 436.

Part of this rise is attributed to increased demand for silver in the electronics and clean energy industries, strengthening its position as a valuable industrial metal.

Trade tensions, particularly those related to US tariff policies, have also increased demand for precious metals as safe havens.

Silver has performed strongly over the past week, supported by industrial and geopolitical factors. As these factors persist, silver may continue to achieve further gains, making it an attractive option for investors seeking to diversify their portfolios.

Gold prices reached approximately $3,400 per ounce in May 2025, expanding the gold-to-silver ratio to 103.2:1, its highest level in decades.

While gold prices rose 23% in 2025, silver only rose 10%, indicating that silver could achieve future gains to offset this difference.

Silver offers a short- to medium-term investment opportunity, especially given its relative underperformance compared to gold. Some forecasts indicate that the price of silver could reach $100 per ounce if the upward trend in the precious metals market continues.

In light of the record highs in global and local gold prices, investors and citizens are beginning to turn to silver as a more accessible and realistic alternative precious metal for investment, especially with the widening gap between gold prices and per capita income in Egypt.

The importance of silver as an alternative investment for citizens is evident. While gold has surpassed $3,300 per ounce globally, silver remains available for less than $35, meaning that small savers can acquire reasonable quantities of silver without the need for significant capital.

Silver has yet to fully catch up with gold's rise, opening the door to potential future gains if silver begins to narrow its price gap with gold.

Global demand for silver in the electronics and solar energy industries makes it more than just a decorative metal; it is a vital component of the modern economy. Demand for silver has seen a significant increase in recent months, driven by citizens' desire to protect their savings from the erosion of the Egyptian pound's purchasing power, amid uncertain global economic conditions and declining confidence in some traditional savings instruments.

Silver is a safe haven during times of inflation and currency devaluation. For those seeking an alternative to gold or an opportunity to enter the metals market at low prices, silver is an attractive option.

Unlike some complex investments, silver can be easily sold at any time and through dozens of stores across the country.

Investment experts advise citizens to allocate a portion of their savings to silver, especially those who cannot afford to purchase gold or invest in real estate or the stock market. Silver is a smart choice for long-term savings, provided that purchases are made from reliable sources.

As gold continues to break records, silver may be the next "opportunity" for Egyptians. A precious, readily available, and widely used metal, silver's potential future price increases make investing in silver a practical and smart choice during times of major change.