Silver prices surged in both local and global markets last week, with the ounce closing at $39.61 (+2.2%), marking its highest level since August 2011. This rise was driven by growing expectations of a U.S. interest rate cut and sustained investment and industrial demand for the white metal.
Local and Global Performance
In the Egyptian market, the price of a gram of 800-purity silver rose from 51.25 pounds to 52 pounds during last week’s trading. The 925-purity silver reached approximately 60 pounds, while 999-purity silver hit around 65 pounds. The price of a silver pound (925-purity) climbed to 480 pounds.
Globally, the ounce of silver opened the week at $38.76 and peaked at $39.61, though it remains below its all-time high of $49.77 recorded in April 2011. During August, the price of 800-purity silver remained stable at 52 pounds locally, while the global ounce rose from $39.37 to $39.61.
Gold and Silver: Concurrent Surge
Gold closed the week at record levels above $3,440 per ounce, while silver approached the $40 mark, reinforcing the role of precious metals as safe-haven assets. Demand for gold surged after Harvard’s endowment fund took a significant stake in the SPDR Gold Trust, the world’s largest gold-backed ETF. Similarly, institutional investments flowed into silver, notably with the Saudi Central Bank investing $30.5 million in the iShares Silver Trust and approximately $10 million in the Global X Silver Miners ETF.
Silver’s Appeal Compared to Gold
While gold remains the preferred metal for central banks, analysts argue that silver offers greater relative value. The gold-to-silver ratio has dropped from over 104 in April to around 86 currently, compared to a historical average of 50–60. Additionally, silver’s extensive industrial applications in solar energy, electronics, and electric vehicles are reducing global stockpiles, unlike gold, which has limited industrial use.
Global Demand and Physical Investments
According to a report by the Silver Institute, physical investment in silver has risen by 34% since the start of 2025, compared to 28% for gold and 18% for Bitcoin. The report noted that physical investment is the most volatile market segment, fluctuating between 157.2 million ounces in 2017 and 337.6 million ounces in 2022.
United States: The largest global market, with individual investors purchasing around 1.5 billion ounces between 2010 and 2024. However, market saturation has led to a decline in demand for new bullion in 2025, reaching its lowest level in seven years.
India: The second-largest market, driven by deep-rooted traditions of owning bullion. Cumulative demand reached 840 million ounces between 2010 and 2024, with holdings of locally traded products rising to 58 million ounces by June 2025 (+51% compared to 2024).
Germany: The third-largest market, dominated by demand for silver coins. After a boom between 2020 and 2022, the market slowed due to the removal of tax incentives but is expected to partially recover in 2025 (+25% compared to 2024).
Australia: Demand has surged since 2019 (3.5 million ounces) to 20.7 million ounces in 2022, benefiting from a favorable tax environment.
Future Outlook
Analysts believe silver is poised for a significant leap in the near future, driven by geopolitical tensions, rising government debt, the global shift toward green energy, and growing investor conviction that silver is undervalued. Investment banks like Citibank predict silver could reach $40 within the next 6–12 months, potentially exceeding $46 by the end of Q3 2025.
Defensive and Investment Asset
Silver is no longer just a store of value but has emerged as both a defensive and industrial asset. It offers individual and institutional investors a hedge against inflation and financial risks at a lower cost than gold. With global demand for silver expected to surpass 1.2 billion ounces by the end of 2025, the white metal is set to become a key player in the precious metals landscape, combining its investment appeal with its growing industrial role.
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