With global silver prices soaring by 50 percent in just over a year and international marketing campaigns fuelling newfound investor interest, silver bullion has emerged from a niche saving strategy into a mainstream financial asset.
Long focused on gold, Egyptians are now turning to silver bars—driven by economic uncertainty, forecasts of rising industrial demand, and the allure of quick returns. In contrast to traditional silver jewellery, which offers little resale value, bullion is reshaping perceptions of wealth preservation and speculation.
Silver prices have surged by 50 percent between January 2024 and May 2025, Wasfi Wasef, adviser to the Metals and Mining Division at the Federation of Egyptian Industries, told Ahram Online.
Drivers behind the surge
Mohamed Saeed, a precious metals trader on El Sagha Street, explained that international marketing campaigns have played a key role in stoking interest. Following a global slowdown in silver-dependent industries due to geopolitical tensions, marketing efforts reframed silver as a lucrative investment.
Saeed noted that silver fell from $50 per ounce in 2010 to just $12 during the COVID-19 pandemic. It has since rebounded and currently trades at around $33 per ounce on global markets.
He clarified that silver has traditionally been regarded as an industrial metal rather than an investment vehicle. Silver stockpiles mounted as global industrial activity contracted, prompting aggressive promotional campaigns that encouraged bullion sales in markets like Egypt.
Wasef added that the same global factors affecting gold prices—such as international market dynamics and the US dollar exchange rate—also influence silver.
Bullion sales surge
The dream of fast returns has driven up silver bullion sales across Egypt since early 2025, spanning weight categories from 50 grams to one kilogram.
Wasef observed that this demand has emboldened some traders to charge up to EGP 3 per gram above international market prices, under the pretext of supply-and-demand dynamics—a claim echoed by Saeed.
High manufacturing costs have also turned consumers away from silver accessories, which often carry mark-ups three times the metal’s value, making bullion the more attractive option.
The price of 999-purity silver (used in bullion) rose by nearly 15 percent—from EGP 50.50 in January to EGP 58 by late May 2025—according to rates shared by a local gold and silver shop on social media. Meanwhile, 925-purity silver (used in coins) climbed by 13 percent, from EGP 46.80 to EGP 53.80.
Silver has long held cultural and commercial value, yet it has historically played second fiddle to gold in investment circles. That’s changing. Amid currency volatility, inflationary pressure, and geopolitical risk, silver’s dual status—as a precious and industrial metal—makes it attractive for stability and future growth.
In Egypt, this shift is palpable. Retail investors are moving away from jewellery purchases, favouring silver bullion for its affordability and steadily rising returns. With a 50 percent price surge from January 2024 to May 2025, more Egyptians view silver as a strategic hedge and a path to wealth-building with lower entry barriers than gold.
A new role for bullion
Though silver bullion is sometimes melted into granules used in gold production, its direct sale as an investment product is a relatively new phenomenon, said Saeed, emerging from the growing consumer desire for quick wealth. This trend has prompted many gold shops to expand into the silver trade.
Wasef recalled that silver was once a staple in household items such as serving trays, tea sets, and candelabras. However, rising costs and the heavy weight of these items—sometimes up to six kilograms—dampened demand due to concerns about theft or loss.
He added that Egypt no longer imports raw silver as heavily as before, since silver from the secondary market now suffices to meet domestic jewellery demand.
Saeed expects sales to continue rising if global industrial demand for silver recovers. Additionally, some consumers disillusioned with the high cost of gold are increasingly turning to silver, helping to fuel this growing wave of bullion investment.
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