A report issued by the Safe Haven Center revealed that silver prices recorded strong gains in both local and global markets over the past week, driven by declining global inventories, renewed concerns over supply constraints, and growing investment and industrial demand for the white metal.
According to the report, silver posted local gains of around 22%, while global ounce prices rose by nearly 28%, marking one of the strongest rallies the market has seen in years.
Local Market: Sharp Price Gains and a Gap with Global Prices
In the domestic market, silver prices increased by about EGP 19 per gram in just one week. The price of 800-fineness silver rose from EGP 86 to EGP 105 per gram, 925-fineness silver reached around EGP 121, while 999-fineness silver climbed to nearly EGP 131. Meanwhile, the silver pound stabilized at EGP 968.
The Egyptian market is witnessing unprecedented activity amid a notable rise in local demand, coupled with supply shortages and the hoarding of raw materials by some suppliers. This has led to a widening gap between local and global prices of roughly EGP 10 per gram, equivalent to about 8%.
The report noted that the local price of 999-fineness silver is trading above its fair global value, which does not exceed EGP 121 per gram, attributing the premium to constrained supply and attempts by some traders to secure higher profit margins.
Silver as an Alternative Savings Asset
The Safe Haven Center highlighted that silver has emerged as an alternative store of value for citizens, particularly amid record-breaking gold prices. Gold prices have surged past EGP 6,060 per gram for 21-karat gold, with 24-karat gold nearing EGP 7,000 excluding workmanship costs, prompting many retail investors to turn to silver as a lower-cost and more attractive option during periods of price volatility.
Global Markets: Historic Gains
Globally, silver prices jumped by about $17.27 per ounce, opening the week at $62 and closing at $79.27, marking all-time record highs.
Silver has now recorded gains exceeding 173% since the beginning of 2025, outperforming gold by a wide margin, as gold rose by about 65% during one of its strongest years since 1979, amid a broad-based rally across precious metals.
Supportive Factors: Lower Rates and Strong Industrial Demand
This performance has been supported by growing market expectations that U.S. interest rates will be cut twice in 2026, boosting the appeal of non-yielding assets. A weaker dollar and year-end liquidity pressures have also strengthened demand for precious metals as both hedging instruments and industrial inputs.
Analysts expect silver prices to move toward $75 per ounce or higher, with the possibility of surpassing the $100 level next year, supported by rapid growth in renewable energy, electric vehicles, and artificial intelligence data centers.
Supply Under Pressure and a Persistent Deficit
On the supply side, ongoing mining disruptions and declining global inventories continue to push the silver market deeper into deficit. Estimates from the World Bureau of Metal Statistics indicate that 2025 will be the fifth consecutive year of supply shortages, with production declining by around 3% annually due to lower ore grades and a lack of new projects.
The Silver Institute also expects supply growth to remain below 2%, keeping the deficit near 20%, which is likely to sustain upward price pressures through 2026.
An Exceptional Price Path in 2025
Silver experienced sharp volatility throughout the year, beginning with recovery attempts in the first quarter, followed by a temporary setback linked to tariff announcements in April. Prices later regained momentum, entering a strong rally from September onward and breaking successive historical levels during the final quarter of the year.
By December, silver prices had surpassed $60 per ounce and then crossed the $70 mark in record time, closing the year near unprecedented levels, supported by a combination of monetary and structural factors.
Outlook
Despite growing caution among banks and major institutions as prices approach the $80-per-ounce level, most industry experts and retail traders believe silver is heading toward another exceptional year in 2026, amid ongoing market deficits, robust industrial demand, and the increasing use of precious metals as long-term hedging tools in a global environment characterized by heightened risk and uncertainty.
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