Silver Posts Historic Gains Locally and Globally on Safe-Haven Demand

Silver prices recorded strong gains in both local and global markets during Wednesday’s trading session, surpassing their all-time highs, driven by rising demand for safe-haven assets, according to a report by the Safe Haven Center.

In the local market, the price of 999-purity silver rose from EGP 189 to EGP 193 per gram, while 925-purity silver climbed to EGP 179. The 800-purity grade reached about EGP 155 per gram, and the silver pound was priced at approximately EGP 1,432.

Globally, silver prices increased from $112 to $113 per ounce, after having hit a record high of $118 per ounce during trading last Monday. The report noted that silver has gained nearly 58% since the start of the year on global exchanges—its best performance since 1979—while gains in the local market stood at around 51%.

The report added that local markets are witnessing strong demand for silver amid a severe shortage of raw material, pushing domestic prices above global levels and leading to longer delivery times.

Silver prices have again risen toward their record high of $118 per ounce, reached on January 26, as investors continue to favor defensive assets.

Precious metals, including silver, attracted investor interest following comments by U.S. President Donald Trump, who said he was not concerned about the recent decline in the U.S. dollar. These remarks reinforced expectations that the U.S. administration is comfortable with a weaker dollar to enhance export competitiveness.

Ongoing political uncertainty in Washington—including threats of new tariffs, challenges to the independence of the Federal Reserve, and so-called “Sell America” rhetoric—continues to dominate market sentiment, supporting further gains in precious metals.

The Federal Reserve is widely expected to keep interest rates unchanged in the 3.50%–3.75% range following its two-day meeting ending Wednesday, after delivering three consecutive rate cuts in 2025. Market focus will shift to the post-meeting press conference for clues on the future path of monetary policy.

Maximilian J. Layton, Global Head of Commodities Research at Citi, said silver is well positioned to continue its strong performance after breaking above the $100-per-ounce level. He noted that the key drivers of the rally—including heightened geopolitical risks and renewed concerns over the Federal Reserve’s independence—are likely to persist in the near term.

Citi has raised its three-month silver price forecast to $150 per ounce, up from a previous estimate of $100, according to Dow Jones Newswires.

In China, a silver-focused investment fund suspended trading after a surge in demand pushed its market price to trade at a significant premium to its net asset value. Silver has also drawn strong interest from retail investors as prices continue to rise, prompting some manufacturers to shift production from jewelry to one-kilogram silver bars.

Silver is rapidly emerging alongside gold as a preferred safe haven, amid escalating geopolitical tensions and a weaker U.S. dollar that are driving precious metals higher. This rally reflects growing global demand for safe assets, fueled by rising military and diplomatic tensions in Europe and the Arctic region, including developments related to Greenland, Venezuela, and Iran.

The historic surge in silver prices has further boosted investment interest, particularly given silver’s dual role as both a monetary and industrial metal. It is widely used in solar panels, electric vehicles, and consumer electronics, benefiting from structural demand linked to the global energy transition and advanced manufacturing.

Market analysts estimate the global market value of silver at around $6 trillion. Prices have been supported by safe-haven demand amid concerns over currency depreciation, as well as strong industrial demand.

However, silver remains highly volatile, with price swings typically larger than those seen in gold. After silver prices rose by more than 200% year-on-year—pushing the gold-to-silver ratio to its lowest level in years—HSBC analysts suggested it may be time for silver investors to consider taking profits.

In a note published Tuesday, HSBC wrote: “After silver prices have risen by more than 200% year-on-year, investors may be asking whether it is time to sell silver.” The bank added that the rally has flipped the gold-to-silver ratio—from unusually high levels in April 2025 to unusually low levels now—despite gold prices rising by about one-third over the same period.

HSBC warned against viewing silver as a new safe-haven substitute for gold, arguing that the rally more likely reflects price convergence with gold, increased participation by retail investors, and a recovery in industrial demand.

HSBC has issued cautionary notes on precious metals since the start of the year, highlighting that while geopolitical risks and debt levels could push gold prices higher, they could also lead to sharper corrections later on.