Silver Prices Jump 13.3% Locally in a Week, Reaching Highest Level Since 2011 Globally

The Safe Haven Research Center reported that silver prices in local markets surged by 13.3% during last week’s trading, alongside a 4.4% increase globally, closing at their highest level since August 2011. The rally was driven by a weaker U.S. dollar, rising industrial demand, and growing market expectations that the Federal Reserve will move toward further monetary easing in the coming period.

Local Market Movements

The 800 purity silver gram rose by EGP 8, from EGP 60 at the start of the week to EGP 68 by the end.

Meanwhile, 999 purity silver stood at EGP 85, 925 purity at EGP 79, and the silver pound coin (925) stabilized at EGP 632.

Global Market Movements

The ounce climbed from $46 to $48, marking its highest level in 14 years, supported by increased safe-haven demand and growing market bets on U.S. interest rate cuts, which boosted the appeal of non-yielding assets such as silver.

This level represents the highest since 2011, when silver nearly reached $50 for the second time in history—the first being in 1980, during the Hunt brothers’ attempt to corner the market.

Performance in September 2025

The report indicated that local silver prices rose 27% in September, gaining EGP 14 per gram from EGP 52 to EGP 66, while global prices jumped 20%, from $40 to $48 per ounce.

Since the start of 2025, silver has recorded gains exceeding 66% locally (from EGP 41 to EGP 68) and 62% globally (from $29 to $48), making it the best-performing precious metal of the year.

The gold-to-silver ratio remained stable at 82 ounces of silver per ounce of gold.

Although silver has outperformed gold in annual percentage gains (60% vs. 47%), it remains below its historical peaks, while gold continues to set record highs near $3,900 per ounce, supported by multiple factors—most notably the U.S. government shutdown.

Key Supportive Factors

Both gold and silver are benefiting from:

A weaker U.S. dollar,

Interest rate cut expectations,

Robust central bank purchases,

Geopolitical uncertainties,

Concerns about fiat currency weakness.

Silver is unique as both a precious and industrial metal, influenced by investment and industrial demand alike.

According to the Silver Institute, industrial demand reached a record high in 2024 at 680.5 million ounces, driven by growing use in power infrastructure, solar energy, and electric vehicles.

Although total demand fell 3% year-over-year in 2024, it still outpaced supply for the fourth consecutive year, resulting in a deficit of 148.9 million ounces. The shortfall is expected to persist for a fifth year in 2025, with production projected at 844 million ounces versus demand exceeding 940 million ounces.

U.S. Economy and Silver Outlook

Weak employment data from ADP strengthened expectations of rate cuts, showing a loss of 32,000 jobs in September versus forecasts of a 50,000 gain.

The CME FedWatch Tool indicates a 99% probability of a rate cut in October and 87% in December, keeping U.S. Treasury yields low and supporting precious metals.

The U.S. dollar’s weakness has made dollar-denominated commodities more attractive to global buyers. Meanwhile, the U.S. government shutdown has delayed the release of key economic data such as employment and factory orders.

Global Demand and India’s Role

India has bolstered global silver demand, doubling its imports of precious metals in September compared to August, as banks and jewelers stockpiled ahead of the festival season and to avoid higher import duties, according to Reuters, citing government and trade data.