The recent surge in gold prices has led some small investors, who often regard gold as a safe haven for their savings, to turn to alternative options, with many now considering investing in silver.
Gold prices have reached unprecedented highs. 24-karat gold is currently priced at LE5,474 per gram, up from LE4,942 last month; 21-karat gold stands at LE4,775, up from LE4,325; and 18-karat gold has risen to LE4,091, up from LE3,707.
The price of a 21-karat gold pound has reached LE38,200 in retail gold stores, up from LE34,720 last month.
“My purchasing power is diminishing day by day. I used to buy a one-gram gold bar every few months, but now the amount I can spare from my household expenses has dwindled due to rising prices,” said Lamia, a housewife in her 40s, when purchasing a 10-gram silver bar for LE750.
“Buying gold has become a distant dream. I have turned to silver instead.”
Ghada, 53, has also had to relinquish her custom of gifting a gold pendant to family and friends upon the arrival of a new baby due to the rising price of gold. Now she buys silver gifts for newborns, and whenever possible she buys herself silver bars to preserve the value of her money.
Eid Mohamed, a silver merchant, said there is now greater demand for silver bars than for silver jewellery, mainly because bars do not incur craftsmanship costs and are seen as a better investment.
He added that the demand for silver has risen since late 2023 due to the record-breaking rise in gold prices. Currently, the price of a gram of pure 999-karat silver stands at LE59, up from LE42 a year ago.
“Silver, like gold, is a precious metal, but gold remains the easiest to sell in the Egyptian market,” Lotfi Mounir, vice president of the Gold and Jewellery Division at the Federation of Chambers of Commerce, told Al-Ahram Weekly.
“When I buy gold, I know I can sell it at any time at the prevailing market price. Silver, on the other hand, faces challenges,” Mounir said. The price of gold is largely consistent for both buying and selling, with price differences exceeding LE20 at most, he added.
“The silver market is smaller. Sometimes there are fears of price-fixing, especially given the limited demand among merchants,” Mounir said. “A gram of silver is priced at LE52. If a merchant offers to buy it for LE50, that would be a six per cent drop. However, if a gold merchant buys a gram of gold from a reseller for LE25 less, the reduction is only about 0.5 per cent.”
“Investing in silver raises concerns about market monopolies, limited options, and unstable outcomes, whereas gold remains a safe haven that is free from such risks.”
“While gold prices have risen sharply, silver has not kept pace although there is global industrial demand,” Ihab Wassef, head of the Gold and Precious Metals Division at the Federation of Egyptian Industries, told the Weekly.
Silver is used in manufacturing electric vehicles, medical equipment, electronics, smartphones, solar panels, and data carriers like fibre-optic cables due to its excellent conductivity, he explained.
Silver’s low prices also make it accessible to a wide range of investors, though it can take years to realise a return, unlike gold, which can yield profits within months.
Eight gold companies have ventured into manufacturing silver bullion, adopting the market principle of “look after your own interests before someone else does.” However, demand has not met expectations, and sales have been sluggish, Wassef said.
In his view, “precious metals should be regarded as ornamental assets and sold only when necessary.” He recommended purchasing jewellery, as a result, noting that Egyptian-made jewellery has lower craftsmanship costs when compared to other countries.
* A version of this article appears in print in the 1 May, 2025 edition of Al-Ahram Weekly
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