Global precious metals markets are experiencing a state of cautious anticipation, amid warnings of continued sharp price fluctuations in the silver market since the beginning of the year. In this context, the Gold and Precious Metals Division of the Federation of Egyptian Industries expectations that silver will likely face further selling pressure in the coming period, potentially pushing the price per ounce down to test levels below $60 , especially given the dominance of short-term speculation.
Silver's journey in 2026: A meteoric rise and a dramatic fall
Ehab Wassef, head of the division, explained that the global silver market is experiencing an exceptional year, with trading in 2026 beginning at $71 per ounce. Prices quickly entered a period of intense and unprecedented speculation, pushing the precious metal to a historic high of $120 per ounce on January 29th. However, this surge proved unsustainable, as prices soon plummeted back to around $70, reflecting the current high level of risk in the market.
Why is silver different from gold? (Economic context)
Economically, silver possesses a dual nature that makes it more volatile than gold; it is not merely a safe haven for investment, but a vital industrial metal used in numerous advanced technology industries, such as solar panels, electric batteries, and microelectronics. This industrial nature makes silver highly sensitive to global economic data and industrial growth rates, unlike gold, which often moves based on central bank policies and inflation concerns.
Wassef confirmed this, pointing out that recent silver price movements were not driven by traditional supply and demand fundamentals, but rather by speculative investment flows and futures trading, leading to a rapid price surge followed by an equally rapid collapse. He emphasized that silver cannot be evaluated using the same analytical tools as gold due to its high sensitivity and rapid trading volume.
The impact of global fluctuations on the Egyptian market
On the local level, the head of the division pointed out that the Egyptian market was not immune to this global trend. The past period witnessed a significant price gap between the global and local prices, reaching as high as 30,000 Egyptian pounds per kilogram . This prompted the division to issue clear warnings to citizens against purchasing at such inflated prices. With the decline in global prices, this gap has gradually narrowed, and local pricing is now approaching global levels.
Tips for investors in times of uncertainty
In closing, Wassef noted that 2026 would remain a year of intense speculation in the silver market. He advised investors seeking to hedge with the precious metal to seize opportunities when prices dip (buy the dip) and hold the metal for extended periods (long-term investment), strongly cautioning against being swayed by rapid price increases (FOMO), which are often followed by sharp corrections that can inflict heavy losses on speculators.
