Silver Prices Fell By 3% In Local Markets Over The Past Week

Silver prices fell by 3% in local markets during last week's trading, with the ounce on the global stock exchange declining by 1.3%. This was affected by the decline in gold and the rise of the dollar following the US-China trade agreement.

Silver prices fell by EGP 1.50 in local markets during last week's trading. The price of a gram of 800-karat silver opened at EGP 48 and closed at EGP 46.5. Meanwhile, the price of an ounce on the global stock exchange fell by $0.43, opening at $32.69 and closing at $32.26.

The price of a gram of 999-karat silver reached EGP 58, while the price of a gram of 925-karat silver reached EGP 53.50, while the silver pound (925-karat) reached EGP 428.

Silver prices in local markets have declined due to a decline in the ounce price on the global stock exchange following the trade agreement between China and the United States. This has mitigated trade war fears, stabilized markets, and subsequently reduced demand for safe havens.

However, local markets are still witnessing high demand for silver during the current period, with changing consumer behavior and the search for alternatives that meet citizens' hedging and savings needs, in light of rising gold prices.

The rise in gold prices and the decline in citizens' purchasing power have led to a demand for silver, especially with companies offering silver bars of various weights that match their purchasing power and are easily converted into cash upon resale.

Both gold and silver are experiencing strong increases as investment assets, in addition to jewelry. However, silver has widespread industrial uses, and therefore, demand for it is likely to never end, which is driving optimism among those optimistic about rising silver prices. Silver and gold should not be viewed as opposites, but rather coexist in an investment portfolio. Silver provides investors with a valuable tool for diversifying their portfolios. Silver has significant industrial value, particularly in sectors such as solar energy, advanced electronics, and electric vehicles. Silver also represents a promising investment opportunity in the current economic landscape, supported by converging macroeconomic factors and rising industrial demand. Silver has demonstrated resilience during periods of inflation, currency devaluation, and market volatility.

Silver supply has consistently fallen short of demand over the past few years; 2024 was the fourth consecutive year of a supply deficit, and this shortage is expected to persist for the foreseeable future.

According to the Silver Institute, total global silver supply is expected to grow by 3% in 2025, reaching an 11-year high of 1.05 billion ounces. However, the institute expects global silver demand to stabilize in 2025 at 1.2 billion ounces, as weak demand for silver jewelry and tableware will mitigate the impact. From gains in industrial applications and retail investments.

Historically, silver prices appear to be relatively undervalued, which may indicate potential for silver to outperform. Whenever there is momentum in precious metals, silver tends to perform well. However, when a correction begins, silver can correct more than gold. Compare this to the long history.