Silver prices in Egypt declined by 4.6% last week, tracking a sharp global downturn of nearly 9% per ounce, according to a report by Safe Haven Hub. The sell-off followed a decision by the Chicago Mercantile Exchange (CME) to raise trading margins on precious metals contracts, prompting heavy liquidation in the final trading sessions of 2025. In the local market, the price of 999-grade silver fell from EGP 131 to EGP 125 per gram, while 925-grade silver declined to EGP 116 and 800-grade silver to EGP 100. The silver pound dropped to EGP 928. Globally, silver lost around $7.27 per ounce, opening the week at $79.27 and closing near $72 per ounce. Despite the weekly decline, silver recorded exceptional gains over 2025, rising 145% locally and 148% globally. In Egypt, 999-grade silver began the year at EGP 51 per gram, peaked at EGP 136, and closed at EGP 125, while 925- and 800-grade silver ended the year at EGP 116 and EGP 100, respectively. Internationally, prices opened at $29 per ounce, surged to a historic high of $84, and settled near $72 by year-end. Safe Haven Hub attributed the abrupt correction to the CME's decision to raise margins twice within three days, a move that shocked markets and triggered widespread selling shortly after silver reached record highs. While silver is not traditionally viewed as a currency, analysts argue it could assume a more central role in the global financial system, positioning it as a strategic asset amid intensifying competition between Western and Eastern markets over key commodities. Such dynamics could increasingly turn silver into a tool for price revaluation and financial hedging. Historically, China absorbed between 30% and 50% of global silver production from the mid-16th to early 19th centuries, underpinning its monetary, fiscal, and trade systems. Today, China remains the world's second-largest silver producer, a major refiner and exporter, and has recently imposed export restrictions aimed at strengthening control over global silver supply chains. The report highlighted mounting pressure on global silver inventories driven by robust industrial demand and constrained supply. Limited primary deposits and heavy reliance on secondary production—mainly from copper, lead, zinc, and gold mining—now account for 72% of global supply. Industrial consumption reached a record 680 million ounces in 2024, led by renewable energy and artificial intelligence applications. Solar energy alone consumes more than 200 million ounces annually, a figure expected to exceed 450 million ounces by 2030. Investment demand, particularly from India, has further tightened physical supply, while stagnant global inventories—largely unchanged for nearly 25 years—continue to strain the market. This imbalance has kept spot prices above futures, as investors pay premiums to secure physical metal. Although futures markets such as COMEX may remain relatively stable, the physical silver market—especially London's off-exchange segment—is facing its most severe disruption in decades. Elevated premiums reflect growing concerns over supply shortages, which are likely to intensify as Chinese export restrictions take effect. Analysts maintain that silver's fundamentals support a positive outlook for 2026 and beyond, underpinned by declining London inventories, inelastic industrial demand from the solar sector, reliance on secondary production, speculative activity, and strategic accumulation by major global powers.
