Silver prices in the local market rose by 145% during 2025, while ounce prices increased by 148% on the global exchange, driven by growth in both investment and industrial demand amid a shortage of supply, according to a report by the Safe Haven Center.
The report revealed that local silver prices increased by EGP 74 over the year. The price of 999 fine silver opened trading at EGP 51 per gram, touched EGP 136, and closed the year at EGP 125. Meanwhile, 925 silver recorded EGP 116, 800 silver reached EGP 100, and the silver pound recorded EGP 928.
Globally, the silver ounce rose by about USD 43, opening the year at USD 29, touching a record high of USD 84, the highest level in its history, and closing at approximately USD 72.
The report also noted that local silver prices rose by about EGP 35 during December. The price of 999 fine silver opened the month at EGP 90 per gram and closed at EGP 125. Globally, the ounce rose by 28.4%, or about USD 16, opening at USD 56.33 and closing at USD 72.
Silver in 2025… A Rising Metal Driven by Industrial and Monetary Decisions Before the Market Enforced Its Correction
In 2025, silver was not merely a follower of gold’s movement; it played an independent role as one of the most volatile and influential commodities in the markets. It benefited from a complex mix of industrial decisions, monetary shifts, and investment demand, before ending the year with a noticeable decline that reflected its fundamentally different nature from gold.
While 2025 began with strong upward momentum—pushing silver to levels not seen in more than a decade—the end of the year revealed the other side of the white metal, as prices retreated under the pressure of regulatory decisions and sharp market corrections.
Why Did Silver Rise Strongly in 2025?
Industrial Demand… The Strongest Silent Driver
The most important reason behind silver’s rise in 2025 was record industrial demand, particularly from the solar energy, electronics, and electric vehicle sectors.
The global expansion of energy-transition projects, supported by government decisions and environmental regulations, pushed silver consumption to unprecedented levels, as it is a key component in solar cells and high-efficiency conductors. This demand was not seasonal, but the result of long-term strategic decisions, creating a gap between supply and actual consumption.
Federal Reserve Decisions… Indirect Support
Like gold, silver benefited from a monetary environment leaning toward easing, as expectations of U.S. interest rate cuts increased demand for commodities—especially metals that combine both investment and industrial characteristics.
However, unlike gold, silver’s sensitivity to interest rates is amplified by its close link to economic growth cycles, making it more responsive to any shift in market expectations.
Speculation and Position Accumulation
The rise in silver attracted a strong wave of speculation in futures markets, with open interest increasing significantly, particularly among hedge funds. This rapid inflow of capital pushed prices higher at a pace that, at times, outstripped fundamentals, paving the way for a sharp correction later on.
Raising Margin Requirements at the Chicago Exchange
One of the most influential decisions was the increase in margin requirements on silver contracts at the Chicago Mercantile Exchange (CME). This move, aimed at reducing systemic risk, effectively forced many short-term traders out of the market, creating strong selling pressure on prices—especially in the second half of the year.
Export and Production Policies
Decisions by some major countries, such as China, to reorganize silver exports or tighten oversight of mining operations contributed to uncertainty around future supply. This uncertainty fueled price volatility rather than market stability.
Why Did Silver Decline at the End of 2025?
After gains exceeding 150% at certain points, a correction became inevitable. With the first signs of relative monetary tightening or dollar strength, investors moved quickly to take profits, hitting silver harder than gold.
By the end of 2025, global economic data showed a relative slowdown in some industrial sectors, raising concerns about weaker industrial demand for silver. These concerns alone were sufficient to push prices lower, even without an actual decline in consumption.
Moreover, silver does not tolerate crowded speculative positions for long. With higher margins and fading momentum, speculators exited rapidly, amplifying the pace and severity of the decline in a short period.
Future Outlook… Conditional, Not Aggressive, Upside
Analytical institutions approach silver’s outlook with greater caution than gold’s. Expectations suggest that silver may enter a phase of price consolidation in the near term, with narrower trading ranges, before resuming an upward trend if global industrial momentum returns.
The base scenario assumes sustained industrial demand over the medium term, higher volatility than gold, and a strong correlation with global growth indicators. The optimistic scenario ties renewed gains to an acceleration in renewable energy projects, while the conservative scenario links weaker performance to a broader economic slowdown.
Silver in 2025 was, above all, the metal of industrial decisions. It rose strongly on the back of the energy transition and global liquidity, but retreated quickly when confronted with regulatory realities and speculative excess.
Unlike gold, which moves primarily as a safe haven, silver remains a dual-character metal—rising sharply when the economy expands and falling aggressively when investors hesitate. Within this delicate balance, silver enters the next phase as a metal of opportunity… but also a metal of risk.
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