Silver markets in Egypt have witnessed an unprecedented surge in demand over recent weeks, amidst a strong bullish wave in global prices supported by fundamental economic factors. This has directly impacted local markets, widening the gap between global and domestic prices.
Karim Soliman, a gold trader, stated that local markets "are experiencing a strong rise in demand coupled with a clear supply shortage," prompting some traders and suppliers to withhold the commodity to drive local prices above global rates.
He explained that the price of a gram of 999 silver is trading at around 130 EGP, whereas "the fair price based on the global rate should not exceed roughly 121 EGP," indicating a gap of approximately 9 EGP between the global and local prices.
He noted that citizens have turned to silver as a savings and investment alternative following the rise of gold prices to record levels. With the price of a gram of 21-karat gold exceeding 6,060 EGP and 24-karat approaching 7,000 EGP (excluding craftsmanship fees), the appetite for silver has increased as a store of value that achieves strong gains during bullish periods.
Soliman emphasized that strong demand alone does not explain the price discrepancy between the local and global markets, explaining that some large companies are exploiting the crisis and restricting supply to maximize profits at the expense of citizens.
Why Have Global Silver Prices Risen?
Silver prices in global markets are witnessing a historic rise driven by several fundamental economic factors. The ounce has risen by approximately 175% since the beginning of the year, after recording $29 on January 1, 2025.
Global markets are experiencing a silver supply shortage, where global demand exceeds available supply, driving prices upward—especially with declining international inventories and expanding industrial demand. Silver is characterized by its wide use in advanced industries such as solar energy, electric vehicles, electronic chips, and big data, which bolsters demand beyond just investment purposes.
Furthermore, expectations of interest rate cuts by the U.S. Federal Reserve and an accommodative monetary climate in 2025 have enhanced the appeal of silver as a non-yielding asset that investors turn to for value protection. Global economic and geopolitical tensions have also pushed investors toward precious metals, including silver, as a hedge against risks and inflation.
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