Silver prices surged in local and global markets during Monday's trading, with the ounce reaching $49, its highest level since 2011. This rise was supported by the uncertainty gripping global markets due to the US government shutdown and increasing bets on continued US interest rate cuts, according to a report from the "Safe Haven Center."
The report clarified that silver prices in local markets rose by about 1 EGP during today's trading:
The price of a gram of 800-karat silver reached about EGP 69.
A gram of 999-karat recorded about EGP 86.
925-karat was around EGP 86.
The Silver Pound (925-karat) settled at EGP 640.
Meanwhile, the ounce on the global exchange jumped from $48 to $49, marking its highest level in 14 years. This was bolstered by increased demand for safe havens and heightened market bets on US rate cuts, which boosted the attractiveness of non-yield-bearing metals, primarily silver.
Weekly and Monthly Performance
Silver prices in local markets climbed by 13.3% last week, coinciding with a 4.4% rise in global exchange prices, closing at their highest levels since August 2011. This was driven by a weaker US dollar, increased industrial demand, and growing market expectations for the Federal Reserve to pursue further monetary easing in the coming period.
This level is the highest since 2011, when silver briefly touched the $50 threshold for the second time in its history, having first reached it in 1980 during the Hunt brothers' attempt to corner the market.
The report also showed that local silver prices rose by 27% during September 2025, an increase of 14 EGP per gram (from EGP 52 to EGP 66). Globally, the ounce climbed by 20%, from $40 to $48.
Underlying Drivers
The surge in silver prices today was fueled by the US government shutdown (which appears likely to continue for an extended period), expectations of a more flexible monetary policy in Japan, and growing political uncertainty in France, all prompting investors to seek alternative assets.
Gold and silver are strongly supported by a weaker US dollar, rate cut expectations, increased central bank purchases, global geopolitical tensions, and concerns over the weakness of fiat currencies.
Silver is unique as both a precious and an industrial metal, meaning its performance is affected by both investment and industrial demand.
According to the Silver Institute, industrial demand reached a record high in 2024 at 680.5 million ounces, driven by its growing use in electrical infrastructure, solar energy, and electric vehicles.
Despite a 3% decline in total demand in 2024, it exceeded supply for the fourth consecutive year, recording a deficit of 148.9 million ounces. The deficit is expected to continue for a fifth year in 2025, with projected production of 844 million ounces against a demand exceeding 940 million ounces.
Investor Sentiment and US Shutdown
The anticipated US interest rate cuts this year, coupled with the potential for a prolonged US federal government shutdown, have boosted demand for precious metals among traders and investors.
Gold-backed Exchange-Traded Funds (ETFs) saw a renewed resurgence last week, with private sector investors contributing to the latest wave of increases. Their total holdings reached their highest level in over three years last month, according to Bloomberg.
There are no signs that the US government shutdown will end soon. Republican leaders in the US House of Representatives have advised their members to stay away from Washington during the federal government closure.
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