Silver Hits Unprecedented Record Levels, Ounce at $70

Silver prices recorded a notable rise in local markets and on the global exchange during Monday’s trading, after the ounce touched its highest level ever. The rally was supported by strong industrial and investment demand, alongside a persistent global supply deficit, according to a report issued by the Safe Haven Center.

Locally, silver prices increased by about two pounds, with the price of 800-grade silver rising from EGP 86 to EGP 88 per gram. Silver of 925 purity reached around EGP 102 per gram, while 999-grade silver stood at approximately EGP 110 per gram. Meanwhile, the price of a silver pound remained stable at EGP 816.

Globally, the silver ounce climbed by about $3 to reach around $70, marking its highest level on record. This came amid an exceptional combination of supply constraints that have persisted for years and accelerating industrial and investment demand since the beginning of the year.

The report noted that silver has posted gains exceeding 141% since the start of 2025, significantly outperforming gold, which rose by around 69% during one of its strongest years since 1979. This performance comes as part of a broader rally across precious metals.

This strong performance has been driven by growing market expectations of two U.S. interest rate cuts in 2026, amid signs of easing inflationary pressures and weakness in the U.S. labor market. Lower interest rates reduce the opportunity cost of holding non-yielding assets, providing structural support for precious metals, particularly silver.

A weaker U.S. dollar has also been a key supportive factor, enhancing silver’s attractiveness to foreign investors. The U.S. Dollar Index, which measures the dollar’s performance against a basket of major currencies, is trading near 98.35 points, slightly lower after reaching a one-week high late last week, further boosting silver’s upward momentum already underpinned by strong investment demand.

Comments by Christopher Waller, a Federal Reserve Governor and the leading contender to head the Fed, reinforced this trend. He called for cutting borrowing costs by as much as a full percentage point, warning that job growth is slowing and nearing zero, and stressing the need for a measured rate-cutting approach to support the labor market without rushing, given lingering inflationary pressures.

In this context, analysts expect silver prices to reach $75 per ounce or higher, with the possibility of exceeding $100 next year. These forecasts are supported by the expansion of renewable energy projects, increased electric vehicle production, and rising demand from artificial intelligence data centers.

On the supply side, ongoing disruptions in mining activity and declining global inventories continue to push the market toward a significant deficit. Estimates from the World Bureau of Metal Statistics indicate that 2025 will be the fifth consecutive year of supply shortages, with production declining by about 3% annually due to lower ore grades and a lack of new projects. Meanwhile, the Silver Institute expects supply growth to remain below 2%, keeping the deficit near 20%.

The Safe Haven Center added that silver continues to receive strong support from declining global inventories, alongside rising demand from the solar energy, electric vehicle, and data center sectors. It noted that prices ended 2025 at record levels, with expectations that the annual deficit will persist for a fifth straight year, suggesting continued upward pressure through 2026.

Geopolitical risks also remain elevated, prompting investors to adopt a cautious stance. Renewed tensions between Iran and Israel have revived fears of potential regional escalation, while rising tensions between the United States and Venezuela—particularly regarding oil exports—are adding to global uncertainty. At the same time, diplomatic efforts related to the war in Ukraine are progressing slowly, with no decisive breakthrough.

As markets approach year-end, lower liquidity could lead to periods of consolidation or modest profit-taking following the recent rally. Nevertheless, upcoming U.S. macroeconomic data—including the four-week average change in employment based on the ADP index, the preliminary third-quarter GDP report, durable goods orders, industrial production, and consumer confidence—may play a key role in shaping silver’s near-term direction.

Overall, as long as expectations for accommodative monetary policy persist, the U.S. dollar remains weak, and geopolitical risks stay elevated, the underlying trend for silver prices remains positive, despite the possibility of temporary pauses after reaching new record highs.