Silver Jumps 6% Locally and 2.5% Globally in a Week

Silver prices witnessed significant gains during last week's trading, rising by 6% in the local market, while the price of an ounce in the global market increased by 2.5%, closing at its highest level since August 2011. This surge was driven by growing expectations that the U.S. Federal Reserve may move toward cutting interest rates at its upcoming mid-September meeting.

According to a report by the "Safe Haven" Research Center, the price of a gram of 800-grade silver rose by approximately 3 Egyptian pounds, starting the week at 52 pounds and closing at 55 pounds. Globally, the price of an ounce increased by one dollar, from $40 to $41.

Meanwhile, the price of 999-grade silver reached around 69 pounds, and 925-grade silver was about 64 pounds, while the silver pound (925-grade) stabilized at 512 pounds.

The report also highlighted that silver prices in the local market have risen by 34% since the beginning of the year, equivalent to 14 pounds per gram, starting at 41 pounds and ending the last week at 55 pounds. On the global level, the price of an ounce climbed from $29 at the start of the year to $41, an increase of $12.

Silver Nears Historical Peaks

Silver recorded its all-time high of $50 per ounce in April 2011, and it is now at $41, putting it close to surpassing this historical peak. Last week, it reached a high of $41.47 on Wednesday, the highest since September 2011, before slightly declining on Thursday and stabilizing at $41 on Friday.

U.S. Jobs Data Boosts Upward Trend

This rise was driven by U.S. non-farm payroll data, which showed a clear slowdown in the labor market. The U.S. economy added only 22,000 jobs in August, compared to expectations of 75,000 jobs. The unemployment rate also rose to 4.3%, the highest since late 2021, while wage growth remained steady at 0.3% monthly and 3.7% annually.

This led to a decline in the U.S. dollar index to 97.50, its lowest level since July 28, and a drop in U.S. Treasury yields, boosting demand for silver and gold as safe-haven assets.

Interest Rate and Monetary Policy Expectations

Market expectations suggest an 88% probability that the Federal Reserve will cut interest rates by 25 basis points at its September 16-17 meeting, with only a 12% chance of a larger 50-basis-point cut.

These expectations align with statements from Federal Reserve Chairman Jerome Powell during the Jackson Hole symposium in August, where he warned of increasing risks in the labor market and emphasized that inflation and employment are moving in opposite directions. He indicated the central bank’s readiness to prioritize job market stability if signs of weakness intensify.

Geopolitical and Industrial Supporting Factors

The report noted that silver’s value has doubled over the past three years, supported by escalating geopolitical risks, global trade disruptions, the growing shift toward green energy, and tensions surrounding the Federal Reserve’s independence. Volatility in the global bond market and rising yields also contributed.

The report pointed out that silver bullion and coins represent the most volatile segment in terms of demand, with the United States, India, Germany, and Australia accounting for about 80% of global demand, according to a report by the Silver Institute in collaboration with Metals Focus.

The report confirmed that physical investment in silver over the past 15 years has ranged between 157.2 million ounces in 2017 and 337.6 million ounces in 2022. In 2025, silver prices have risen by 34%, compared to a 28% increase for gold and 18% for Bitcoin.

Silver: Between Investment and Industry

Despite gold remaining the preferred monetary metal for central banks and hedge funds, silver has a relative appeal due to its lower value compared to gold. The gold-to-silver ratio remains high at over 86, compared to a historical average of 50 to 60.

Analysts believe silver may currently be in a stronger position than gold, as it is no longer just a store of value but has become integral to key industrial sectors such as solar energy, electric vehicles, and microelectronics. This growing industrial consumption, coupled with a clear decline in global silver supply, contrasts with gold, where industrial demand remains limited.

Future Outlook

The report concluded that silver is heading toward new historical highs, supported by economic and geopolitical tensions, the global shift to renewable energy, and a weakening U.S. dollar. As investors continue to view silver as undervalued compared to gold, the coming years may mark a period of strategic repositioning for the white metal in global investment portfolios.