According to a Reuters report, surging prices and a weakening currency have driven the price of gold in Egyptian pounds to record high levels, pricing many Egyptians out of the market. In order to protect their wealth from currency devaluation, many are turning to silver as a more affordable alternative.
The Reuters report called the trend “a measure of an economic crisis.”
As of Jan. 30, the price of gold had risen more than 120 percent on an annual basis as demand for gold coins and bars increased by 58 percent.
An Egyptian silver dealer called silver “the new gold.”
A woman told Reuters that silver was an affordable alternative to gold.
A small 18-carat earring weighing less than a gram is more than 3,000 pounds. I can’t afford that as a gift anymore so I bought a silver necklace for around 1,900. It’s not the same, I know, but it still has value.
And like gold, silver also historically protects wealth from currency depreciation. The price of silver in Egyptian pounds has more than doubled in the past year.
Although about half of global demand is for industrial and technological uses, at its core, silver is a monetary metal. While the price is more volatile in the short run, silver tends to track up and down with gold over time. In fact, silver often outperforms gold in a gold bull market. This was the case during the pandemic. As gold pushed above $2,000 an ounce, a 39 percent gain, silver rallied to nearly $30 an ounce, a 147 percent increase.