Silver prices recorded notable gains in both local and global markets over the past week, supported by declining inventories, renewed concerns over supply, and rising investment demand. According to a report by the Safe Haven Center, the white metal gained about 7.5% in local markets, while global spot prices rose by 8.2%.
Locally, silver prices increased by around EGP 5.5. Silver of 800 fineness opened at EGP 80 per gram and climbed to EGP 86, while 925 fineness reached about EGP 100 per gram and 999 fineness about EGP 107. The silver pound remained stable at EGP 800. Globally, silver rose by approximately $5.10 per ounce, opening at $62 and closing at $67.10.
The report noted that silver is trading at unprecedented levels in global commodity markets, driven by an exceptional combination of prolonged supply constraints over several years and strong industrial and investment demand since the beginning of the year. It highlighted that silver has gained more than 131% year-to-date, significantly outperforming gold, which rose by around 60% during one of its strongest years since 1979.
Silver prices continue to hover near their all-time high of $67 per ounce, amid a broad rally in precious metals fueled by growing market expectations of two U.S. interest rate cuts in 2026. These expectations were reinforced by remarks from Christopher Waller, Federal Reserve Governor and a leading contender to chair the Fed, which signaled a more accommodative monetary policy stance.
Speaking at a forum on CNBC, Waller said U.S. borrowing costs should be reduced by as much as a full percentage point, warning that job growth is slowing toward near-zero levels. He called for a measured rate cut next year to support the labor market, while stressing that persistent inflationary pressures require caution and gradual movement toward a neutral rate.
While the silver market is expected to remain strong in 2026, supported by rising industrial demand and declining supply, the report noted it is unlikely that prices will replicate the more than 130% surge seen in 2025. Nevertheless, many metals analysts expect silver prices to reach $75 per ounce or higher, and potentially exceed $100 per ounce in the coming year, driven by growth in renewable energy, the expansion of electric vehicles, and increasing demand from artificial intelligence data centers.
On the supply side, mining disruptions and low current silver inventories are contributing to a significant deficit, pushing prices higher. Expectations of U.S. interest rate cuts and a weaker U.S. dollar are also expected to support speculative demand for silver, alongside any geopolitical tensions that could boost safe-haven buying.
The report confirmed that U.S. labor market data for November showed clear signs of slowing activity, with the unemployment rate rising to 4.6%, the highest level since 2021. Although job gains exceeded expectations, they failed to offset the sharp decline recorded in October, increasing market anticipation ahead of the release of the U.S. Consumer Price Index (CPI) data to determine the future path of inflation and monetary policy.
According to the report, silver continues to receive strong support from falling global inventories and rising demand from retail and industrial sectors, particularly solar energy, electric vehicles, and fast-growing data centers. Prices reached record highs in late 2025, with expectations that the annual market deficit will persist for a fifth consecutive year, maintaining upward pressure through 2026.
Silver has clearly outperformed gold on an annual basis, rising by more than 131% in 2025 compared with gains of no more than 65% for gold. Some analysts expect silver’s bullish momentum to extend toward levels above $70 per ounce in 2026, should the low interest rate environment persist.
Commodities experts attributed this record performance to strong industrial demand—especially from technology, renewable energy, and electric vehicle sectors—alongside increased investment interest in silver as a hedge amid escalating global geopolitical and economic risks.
The report also pointed to technical factors in the silver market, including structural constraints in global supply and speculative momentum, as key drivers behind the surge to unprecedented price levels, reflecting a notable shift in investor preferences toward white metals.
Regarding supply, the report explained that the sharp price increase stems from a continued supply deficit. Estimates suggest that 2025 will mark the fifth consecutive year of shortages, with mined production declining by about 3% year-on-year due to lower ore grades and a lack of new mining projects, according to data from the World Bureau of Metal Statistics. The Silver Institute expects supply growth of no more than 2% this year, keeping the deficit near 20%.
On the demand side, silver remains a critical input in industrial applications, particularly renewable energy and electronics, supported by the expansion of decarbonization projects and digital transformation.
The report concluded that the dual industrial and investment role of silver has strengthened its appeal within investment portfolios, especially amid rising inflows into silver-backed exchange-traded funds (ETFs) and growing expectations of global monetary easing, which has reduced the opportunity cost of holding non-yielding assets and reinforced silver’s status as a key hedging and diversification tool.
A Silver Institute report emphasized that industrial demand will remain a primary long-term support for prices, as solar energy, electric vehicles, data centers, and artificial intelligence continue to expand, confirming that silver will remain a core component of the global energy transition in the coming years.
Silver’s performance in 2025 reflects gains of around 131% since the start of the year, far exceeding gold’s rise over the same period. The acceleration in silver prices toward year-end also mirrors broader investment trends, with the metal increasingly viewed as a macroeconomic hedge and a strategic industrial input amid growing demand for AI and electricity.
Like gold, silver tends to benefit when investors anticipate interest rate cuts and improved financial conditions. The report pointed to U.S. macroeconomic data supporting this narrative, including lower-than-expected inflation and rising unemployment, which reinforce expectations that the Federal Reserve will continue its accommodative policy stance. Markets are currently pricing in at least two 25-basis-point rate cuts in 2026, based on data from the London Stock Exchange Group.
Supply tightness is no longer just a slogan but a key pricing factor. The physical silver market is small enough that even minor changes in inventories and financing costs can have a rapid and significant impact on prices.
The Safe Haven Center also underscored the ongoing supply shortage and the role of momentum-driven buying in amplifying silver’s price moves. A Deutsche Bank report noted that silver lease rates have risen to their highest level since 2002, describing the supply available to industry as the tightest on record.
Even when COMEX inventories appear large on paper, analysts warn that regional availability and deliverable liquidity may tell a different story, particularly when capital flows and political risks concentrate metal in specific locations.
Silver stands out among precious metals for combining investment appeal with intensive industrial use. The Safe Haven report linked strong demand to AI data centers, solar cells, and electric vehicles, noting that the expansion of artificial intelligence is effectively transforming silver into “another AI investment.” This view was supported by a report from the Silver Institute and Oxford Economics on rising silver demand linked to digital transformation and AI adoption.
Beyond aggregate and industrial demand, many reports confirm that investment flows are materially contributing to the rally. Silver ETF inflows remain a key theme, alongside retail investor speculation. Deutsche Bank expects ETF holdings to rise to around 1.1 billion ounces by the end of 2026, surpassing the previous record.
In a separate outlook for 2026 published by Nasdaq, Ole Hansen of Saxo Bank noted that silver ETF inflows reached about 130 million ounces in 2025, lifting total holdings to around 844 million ounces—an increase of roughly 18%.
Viewed holistically, the flow picture highlights a critical takeaway for 2026: even the smallest marginal increase in investor demand could disrupt the delicate physical balance, especially in a market already trending higher.
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