Silver prices recorded strong gains in both local and global markets during Monday’s trading, touching a new all-time high near $94 per ounce, supported by a powerful technical breakout that reinforced silver’s position as one of the strongest trending assets in global markets, according to a report by the Safe Haven Center.
The rally accelerated amid renewed demand for safe-haven assets following U.S. President Donald Trump’s threats to impose tariffs on eight European countries, alongside persistent structural supply constraints that continue to tighten precious metals markets.
Local Market
Domestically, the price of 999 fine silver rose from EGP 145 to EGP 150 per gram, while 925 silver climbed to EGP 139, 800 silver reached around EGP 120, and the silver pound recorded EGP 1,112.
Global Markets
Globally, silver advanced from around $90 to $93 per ounce, briefly touching $94. Local silver prices had already risen 11.11% over the past week, in parallel with strong global gains, as the ounce increased by about 12.5%.
Silver’s surge followed Trump’s threat to impose tariffs on the United Kingdom, France, Germany, and several other European countries unless the United States is allowed to purchase Greenland. The escalation pushed silver prices to new record levels.
Trump announced plans to impose 10% tariffs starting February 1, which would rise to 25% from June 1 if no agreement is reached. As seen last year, tariff threats have supported precious metals prices amid rising stagflation risks.
High tariffs typically slow economic growth while driving inflation higher—conditions considered ideal for silver performance. Market attention is now firmly focused on this latest escalation, making close monitoring of developments critical, as they may present valuable investment opportunities.
Risk sentiment is expected to remain defensive until clear signs of de-escalation emerge. Further escalation could trigger another strong rally, while any easing of rhetoric may see silver retreat toward previous levels.
Gold and Silver at Record Highs
Gold and silver both reached new record levels on Monday, while European equity markets declined, after Trump threatened additional tariffs on eight European countries in an intensifying effort to acquire Greenland.
Gold climbed to an all-time high of $4,690 per ounce, as investors sought safe-haven assets. Silver surged to a record $94.08 per ounce before easing to $93.22, still posting gains of around 3.6%.
Meanwhile, European stocks fell at the open, with France’s CAC 40 down 1.6%, Germany’s DAX lower by 1.3%, Spain’s IBEX 35 down 0.3%, and London’s FTSE 100 slipping 0.5%.
On Saturday, Trump threatened to impose 25% tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland unless the U.S. is permitted to buy Greenland, marking an unprecedented escalation in his campaign to take control of the Danish autonomous territory.
In a lengthy post on Truth Social, Trump announced a 10% tariff from February 1 on all goods shipped to the United States, rising to 25% on June 1 if no deal is reached.
This move pushed the U.S. dollar down by as much as 4% against the Swiss franc and 0.2% against the Japanese yen, before it pared losses by midday London time.
The European Union, particularly countries such as Belgium, is expected to seek ways to exploit tariff loopholes, while EU ambassadors are preparing retaliatory measures if Trump follows through on his threats.
Supply, Monetary Policy, and Gold–Silver Ratio
Recent data suggest there is no urgent need for the Federal Reserve to cut interest rates, with the first reduction unlikely before June at the earliest, implying some near-term pressure on prices. Nevertheless, sustained demand, supply shortages, and macroeconomic volatility continue to support silver.
The gold-to-silver ratio fell to its lowest level since 2012, after exceeding 100 in April 2025, as silver surged 150% over the past 12 months, signaling stronger momentum relative to gold.
Silver has benefited from a resurgence in speculative demand alongside rising industrial consumption, exacerbating liquidity issues and supply-chain constraints and triggering a wave of short covering.
Over the past year, silver prices climbed around 150% and continued their advance into early 2026, trading above $91 per ounce, while gold maintained strong support above $4,600, posting gains of more than 6% since the start of the year.
Analysts at BMO Capital Markets noted that the gold-to-silver ratio may decline further in the short term but is likely to rise over the longer term due to expectations of growing physical supply surpluses.
The bank emphasized that while investment demand has been the primary driver of the unprecedented rally, a more accurate measure of market performance lies in actual industrial silver consumption—particularly in the solar energy sector, which has accounted for about 58% of demand growth since 2020. However, demand growth is expected to slow in the near term.
BMO also highlighted solid-state battery innovation, which could add around 100 million ounces of industrial silver demand by 2030 if commercialization efforts by companies such as BYD, Samsung, and LG succeed. Until then, rising supply could limit silver’s performance relative to gold.
The bank concluded that the market remains overbought, and any future liquidation wave would likely require a clear technical breakdown to begin. Ongoing monitoring of U.S. tariff policy remains critical, given its potential impact on market liquidity and physical metal availability.
In conclusion, silver remains in a strong upward phase, driven by investment and speculative demand, while its long-term trajectory will depend on the balance of industrial supply and demand, with the gold-to-silver ratio likely to rise again as physical surpluses expand in the coming years.
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