Silver Prices Near $50 an Ounce – Can the Rally Last?
Global silver markets are witnessing a surge, with prices edging close to the historic $50 per ounce mark, driven by tightening supply and rising demand across both industrial and investment sectors, according to Ehab Wassef, Chairman of the Gold and Precious Metals Division at the Federation of Egyptian Industries.
Wassef explained that the current rally reflects a structural supply-demand imbalance, where available supply has fallen short of actual demand. He noted that while short-term corrections may occur, the overall trend supports continued price growth in the medium term.
Importantly, Wassef distinguished today’s rally from the infamous 1980 silver crisis, when brothers Nelson and William Hunt attempted to corner the market by buying massive quantities of the metal. That speculative move triggered an artificial price spike, followed by a sharp collapse once U.S. regulators intervened.
> “Unlike the speculative-driven boom of 1980, today’s price gains are supported by real fundamentals,” Wassef said. “Industrial demand—particularly in clean energy technologies such as solar panels and semiconductors—is rising sharply, while investors are also returning to silver as a safe-haven asset, much like gold, during times of economic uncertainty.”
He added that silver jewelry now accounts for a smaller share of global consumption compared to investment demand in bars and coins, as both retail and institutional investors prefer holding silver in raw form for ease of trade and stronger hedging value.
Looking ahead, Wassef stressed that silver is entering a new phase of sustained price growth, underpinned by natural supply and demand forces rather than short-term speculation. He expects prices to remain at elevated levels so long as global supply remains constrained against rising demand.