Silver Gains Popularity in Egypt Amid Economic Turmoil

In Egypt, the soaring prices of gold and the nation’s economic challenges have led to a significant shift in consumer behavior, with many Egyptians turning to silver as an alternative means of preserving their savings. This trend reflects the broader economic crisis in the country, characterized by high inflation rates exceeding 30 percent and a currency that has lost 50 percent of its value against the dollar.

Traditionally, Egyptian engagements are celebrated with the gifting of a gold jewelry set, known as “shabka.” However, the rising cost of gold, which has seen a more than 120 percent increase per gram in the year to January 30, reaching 3,875 Egyptian pounds ($126), has made this tradition increasingly difficult for many to uphold. Instead, silver has become a popular substitute, with salesmen like Abanob from a Cairo silver store remarking, “Silver is the new gold.”

The shift to silver is also evident in the surge in demand for gold coins and bars, which rose nearly 58 percent from 2022 to 2023, according to the World Gold Council’s annual report. This demand spike highlights the growing interest in precious metals as a safe haven for savings amidst the economic downturn.

For individuals like Eman Mahmoud, a 51-year-old mother of three, the choice to purchase silver jewelry instead of gold for gifts is driven by affordability. She notes that even a small 18-carat gold earring is now beyond her budget, leading her to opt for silver necklaces as valuable yet more economically feasible gifts.

While some Egyptians have sought to protect their wealth by investing in foreign currency or property, the volatile exchange rates and the high cost of real estate limit these options for the majority. The black market rate for buying dollars has fluctuated dramatically, underscoring the financial instability many Egyptians face.

Despite the price of silver more than doubling within a year, it remains a more accessible option for those looking to invest in precious metals. Ramy Zahran, an 18-year-old high school student, shares his experience of buying silver bullion at a significantly lower price than gold, demonstrating the appeal of silver as a more affordable investment during these economically challenging times.

This trend towards silver in Egypt highlights the adaptive strategies individuals are employing to navigate the economic crisis, with precious metals serving as a key component in their efforts to safeguard their financial futures.