Silver prices in local markets rose by 7.4% over the past week.

Silver prices in both local and global markets saw notable increases last week, with the white metal gaining 7.4% in local markets and the ounce rising 6.4% on international exchanges, according to a report by the Safe Haven Center. This surge came amid declining inventories, rising investment demand, and renewed concerns about supply.

In local markets, silver prices increased by approximately EGP 5.5 per gram, with 800-grade silver opening at EGP 74.5 and climbing to EGP 80. The 925-grade silver traded at EGP 92.5 per gram, and 999-grade at EGP 100, while the silver pound remained stable at EGP 740. Globally, the ounce rose by $3.73, opening at $58.27, reaching a peak of $65 before closing at $62.

The rise in silver prices was driven by strong buying amid expectations of US interest rate cuts, ongoing industrial demand in sectors such as electronics, solar energy, and microchips, as well as reduced global supply. This boost helped silver outperform gold, with the gold-to-silver ratio dropping to 69 points, its lowest level since July 2021.

Global inventory data showed London Exchange stocks rising by 1,447 tons since the start of the year, and COMEX stocks increasing by 4,311 tons, with the majority of inventories still concentrated in London at a ratio of 1.91 compared to COMEX. About 78% of silver holdings in the London Bullion Market Association vaults are represented by exchange-traded funds (ETFs), up from 65% in November 2024.

Silver-backed ETFs saw strong inflows, with holdings increasing by 487 tons in November and more than 475 tons since early December, reflecting significant institutional participation. Despite rising investment demand, the increase in available quantities at the London Exchange indicates a gradual improvement in market conditions.

Standard Chartered Bank anticipates further upside potential for silver, although short-term volatility may occur as the market seeks a new balance following sharp recent gains. Reports from Reuters, The Wall Street Journal, and the Financial Times agree that silver is undergoing a “strategic transformation” as both a key industrial metal and an investment asset, with expectations to trade in the $55–$70 range in the near term.

In 2025, silver experienced an unprecedented rally, surpassing historical highs due to structural market balances, macroeconomic factors, and rising industrial demand, including usage in solar panels, electric vehicles, and communication components. Spot silver prices reached $65 per ounce for the first time ever, nearly doubling since the start of the year, outperforming gold in percentage gains.

The Silver Institute forecasts continued supply deficits for the fifth consecutive year in 2025, sustaining upward price pressures. Expectations of US Federal Reserve rate cuts also increased silver’s appeal as a risk hedge, while a relatively weaker dollar and investor inflows into silver-backed funds further supported prices.

Despite this exceptional performance, some reports indicate that industrial demand may ease due to slowing global economic growth. Nevertheless, investment demand remains sufficient to maintain high prices and prevent sharp declines.

Looking ahead to 2026, the market remains optimistic. Analysts from major investment banks, including Bank of America, have raised their silver price forecasts to around $65 per ounce, reflecting continued momentum supported by structural factors driving demand over the medium term, albeit with potential short-term price volatility.