Silver prices rose in local markets during Saturday’s trading, in line with the weekend closure of global exchanges, after the ounce surpassed its highest level on record, supported by a weaker U.S. dollar and renewed demand for safe-haven assets, according to a report issued by the Safe Haven Center.
The report said local silver prices moved higher, with 999-fine silver rising from EGP 163 to EGP 171 per gram, 925-fine silver climbing to EGP 159, and 800-fine silver recording EGP 137, while the price of the silver pound reached EGP 1,272.
Globally, silver posted weekly gains of about 15%, reaching $103 per ounce — the highest level in its history — benefiting from a global environment marked by heightened risk aversion, renewed demand for defensive assets, and escalating political and economic tensions.
The report noted that the pace of gains accelerated despite a relative easing of geopolitical risks following the de-escalation of the trade dispute between the United States and the European Union. However, renewed threats by U.S. President Donald Trump to impose tariffs on eight European countries reignited market tensions, alongside ongoing structural constraints on global silver supply, which have tightened conditions across precious metals markets.
The U.S. dollar index is heading toward its worst weekly performance since June, as the Trump administration’s confrontational policies — including controversy surrounding Greenland — strained relations with key trading partners, undermining the image of the United States as a stable economic power and weakening the dollar’s standing as a global reserve currency.
The report highlighted that global supply shortages remain a key source of pressure, limiting the market’s ability to absorb rising demand amid persistent challenges in expanding mining and processing capacity, thereby reinforcing upward price pressures.
Analysts believe silver’s move to record levels reflects a fundamental shift in investor behavior, as the metal is no longer viewed solely as an industrial commodity, but increasingly as an investment asset capable of hedging against uncertainty surrounding global growth prospects and interest-rate trajectories in 2026.
The report added that silver’s rally is part of a broader upswing across precious metals, driven by renewed fears of a transatlantic trade conflict following rising political tensions between the United States and Europe, which has strengthened demand for defensive assets.
Investors are also seeking protection against risks stemming from U.S. trade policy, the growing U.S. public debt burden, and increasing political instability.
The report noted that repeated attacks by the U.S. administration on the Federal Reserve have raised concerns over central bank independence, fueling what is known as the “currency debasement trade,” as investors increasingly favor gold and silver over currencies and government bonds, particularly amid sustained pressure on the dollar.
In addition to tensions between Washington and its European partners, ongoing conflicts in Eastern Europe and the Middle East continue to keep geopolitical risks elevated, providing strong fundamental support for silver as a hedge against global economic and financial uncertainty.
Frenzied buying wave
Silver prices broke above the $100-per-ounce threshold for the first time on Friday, amid strong demand and intense retail buying from Shanghai to New York.
While early signs of slowing momentum emerged last week — prompting warnings that prices could be approaching a peak — hasty decision-making can be just as damaging to an investment portfolio as inaction, a lesson markets repeatedly reinforce.
By the end of the week, silver achieved a key milestone by decisively moving above $100 per ounce. Gold has yet to reach $5,000, but with prices less than $20 away, it could happen before a trader’s morning coffee cools.
Silver prices have risen about 44% so far this month and more than 180% since the powerful rally began in the second half of last year. Analysts warned last week that the surge was starting to look excessive — and that assessment may be valid.
As the saying goes, “Markets can remain irrational longer than you can remain solvent.” Unfortunately, markets have long memories, while investment accounts do not.
Still, some analysts argue there is logic behind the explosive rise in gold and silver. Precious metals regained momentum earlier in the week after President Donald Trump threatened to impose tariffs on European countries that did not support his push regarding Greenland, at one point not ruling out the use of military force. Although he later walked back those threats, the damage had already been done.
Over the past week, renewed selling pressure emerged in U.S. Treasuries, with reports indicating that some European institutions are seeking to reduce their holdings of U.S. government bonds. This shift toward currency debasement strategies provides strong fundamental support for gold and silver, even at elevated price levels.
Under these conditions, analysts expect gold to move comfortably above $5,000 per ounce, while silver prices could approach $150 per ounce.
That said, a balanced view is essential. While silver may still have room to rise, many analysts caution that higher prices could begin to weigh on industrial demand. As the saying goes, the cure for high prices is high prices.
Reaching $100 per ounce is a remarkable milestone for silver, and strong momentum supports the move. However, at these levels, investors are advised to remain patient and resist chasing prices. Under current conditions, silver can easily experience daily swings of 10%, a level of volatility that is not suitable for risk-averse investors.
Both silver and gold are likely to experience a correction at some point. Based on recent price action, any pullbacks are expected to be shallow and short-lived — but it is these moments, rather than optimistic headlines, that may offer the best opportunities for investors to build positions.
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