Silver prices in local markets soared by 7.7% over the past week, reflecting increased industrial demand, ongoing geopolitical tensions, and market expectations of further interest rate cuts.
According to a recent report from Safe Haven Hub, these factors have led to heightened interest in silver, making it an attractive option for both investors and consumers.
The report revealed a rise of EGP 3 per gram for locally traded silver, with the price of 800-carat silver starting the week at EGP 39 and closing at EGP 42 per gram.
Meanwhile, international markets saw a more modest 0.3% increase in the price per ounce, driven largely by elevated demand.
After reaching a 12-year high of $35, the price per ounce ended the week at $33.67, marking its highest level since October 2012.
In the local market, 999-karat silver was reported at EGP 52.5 per gram, while 925-karat silver traded at around EGP 48.5 per gram. Silver coins are now priced at about EGP 420 EGP each.
The strong local demand for silver, driven by its relatively lower price compared to gold, has bolstered its appeal as an investment hedge amidst rising inflation and reduced purchasing power. Investors seeking to diversify their portfolios are increasingly turning to silver as a viable alternative to gold.
Despite the recent gains, silver faced some downward pressure by the week's end as investors took profits after prices surged to $35 per ounce.
This followed the release of US durable goods orders data for September, indicating a slight 0.8% decline. While this decrease was less than the projected 1.0% fall, it did lead to a drop in both the US dollar and 10-year Treasury yields, supporting silver’s market value.
Notably, silver has outpaced gold in growth this year, with prices climbing over 47% since January.
Market trends also show a widening gold-to-silver price ratio, which now hovers around 81.9 after fluctuating between 85 and 90 in recent months.
As technological and industrial sectors increasingly rely on silver, prices are likely to continue rising.
Russia’s announcement of expanded silver and platinum reserves may further support these trends, as analysts expect record-high silver prices in the near term, fueled by ongoing industrial demand and potential rate cuts from the US Federal Reserve.
@Walid Farouk
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