Silver prices declined by about 1.5% in local markets last week, while globally the metal gained 0.5%, reflecting ongoing economic uncertainty across global markets, according to a report by the Safe Haven Center.
The report noted that 800-grade silver fell from EGP 66 to EGP 65 per gram, while 925-grade silver stood at EGP 75, and 999-grade at EGP 81 per gram. The silver pound remained stable at EGP 600.
Globally, the ounce of silver rose from $48 to $48.22, after having briefly surged to $55 in mid-October — its highest level in four decades.
Silver Holds Below $50 an Ounce Despite Bullish Sentiment
Silver continues to trade sideways below the $50-per-ounce mark but faces renewed optimism following the U.S. Geological Survey’s (USGS) decision to officially add the white metal to the 2025 Critical Minerals List, a move expected to reshape the global silver market.
Although silver is considered both a precious metal and a monetary reserve asset, over 60% of global demand comes from industrial uses, particularly in technology and solar energy. Analysts say this new recognition of its strategic importance may further complicate the market and deepen global supply chain pressures.
Global Supply Deficit Persists for Fifth Year
The report highlighted that the supply deficit in the silver market has continued for the fifth consecutive year, driven by surging industrial demand that has depleted above-ground inventories to critical levels.
Global market volatility has also been amplified by U.S. trade and tariff policies under President Donald Trump, prompting banks and investment funds to stockpile massive silver reserves in New York in anticipation of potential new tariffs.
Meanwhile, physical supply in London has tightened due to record Indian demand, pushing silver lease rates to historic highs of over 34% last month, and causing a backwardation phenomenon as spot prices outpaced futures.
Silver Becomes a Pillar of U.S. Industrial Policy
Adding silver to the critical minerals list aligns it with Washington’s industrial and national security goals, particularly those aimed at boosting domestic production.
In mid-April, the U.S. government launched a Section 232 investigation into critical minerals and refined products — a move reflecting a broader strategic shift toward reducing import dependence.
Experts warn that this policy shift could increase market volatility and supply pressures over the coming months.
Solar Industry Faces Cost Pressure from Rising Silver Prices
The report cautioned that rising silver prices may compel solar panel manufacturers to reduce silver consumption, as the metal accounts for about 15% of total production costs.
Each $10 increase in silver’s price adds further pressure on manufacturers to find alternative materials. Some are exploring copper-based solutions, though the technology remains in its early stages and has yet to be proven at scale.
London Reserves Rise as COMEX Stocks Decline
The London Bullion Market Association (LBMA) reported that silver holdings in London vaults rose 6.8% in October to reach 26,255 metric tons, valued at $41.3 billion.
This increase eased short-term borrowing costs from record levels seen earlier in the month, though rates remain above the long-term average.
Conversely, COMEX warehouses in the U.S. saw a withdrawal of roughly 1,568 tons of silver since early October, reflecting a global shift in storage centers amid ongoing uncertainty surrounding U.S. tariff policy.
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