Safe Haven: Silver Up 27% Since Start of 2025

Silver prices in the local market surged by 3% over the past week, supported by a global rally that saw the metal’s spot price break above $38 per ounce, posting weekly gains of 4%, according to a report by the Safe Haven Hub center.

This strong performance was driven by growing investment and industrial demand amid a global supply shortage and escalating trade tensions, particularly following recent tariff measures announced by the U.S. administration.

The price of 800-purity silver rose by EGP 1.5 during the week, climbing from EGP 50.50 to EGP 52 per gram, while globally, the ounce price increased from $36.86 to $38.32.

According to the report, local silver prices have jumped by 27% since the beginning of 2025, gaining EGP 11 per gram (800 purity), having opened the year at EGP 41. Meanwhile, the global ounce price surged by 32%, rising from $29 to $38.32—its highest level in 13 years.

The global silver market is entering a new phase marked by rising borrowing costs, declining liquidity in markets such as London, and widening price spreads between major exchanges like COMEX and the London Bullion Market. These indicators reflect growing instability and imbalance in the precious metals sector.

In the U.S., increased silver premiums suggest tighter supply and stronger physical demand, helping drive prices to unprecedented highs.

At the same time, copper prices rose by 13% following Washington’s decision to impose a 50% tariff on imports, widening the price gap between exchanges and pushing investors toward silver as an industrial alternative, given the strong correlation between the two metals.

Silver has surged by 34% since its April lows. Platinum, meanwhile, has risen by 66%, approaching $1,500 per ounce, while gold has stabilized around $3,355. This rapid rebound in silver prices indicates a strong comeback for the “grey metal,” particularly with its recent outperformance relative to gold.

According to the Silver Institute, holdings in silver-backed financial products exceeded 1.13 billion ounces by the end of June 2025, with net inflows totaling 95 million ounces over six months—surpassing last year’s full-year total.

Industrial demand is also expected to reach 677.4 million ounces this year, fueled by the growing green energy sector, particularly solar panels and photovoltaic technologies.

However, the market continues to face a persistent supply deficit for the fifth consecutive year, amid production disruptions in major mining countries like Mexico and Russia, declining reliance on primary silver mines, and a market that depends 70% on secondary silver extracted from other metals.

With silver crossing the $35 mark in June, several analysts now view the $50 target as within reach, especially given the historically low levels of free-flowing silver available for sale—estimated at just 155 million ounces.

Analysts at Citi Bank project further gains, predicting silver could reach $40 within 6 to 12 months, and possibly touch $46 by Q3 2025, driven by tight supply, strong demand, and continued investment momentum.

Straddling its dual identity as a safe haven during crises and a vital industrial input for the clean energy transition, silver is proving itself to be more than just a precious metal—it is a strategic asset reshaping its place in the global market landscape.

With trade tensions rising, supply shrinking, and industrial demand growing, silver is poised to be the standout performer in the second half of 2025—potentially even outshining gold.