Silver is a highly highly commercial metal among investors. It was historically used as a magazine of values ​​and exchange medium. Although less popular than gold, traders can turn to silver to diversify their investment portfolio, due to its internal value or as potential security during high inflation periods. Investors can buy physical silver, in coins or in bars or replace them via vehicles such as stock funds that follow their price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the escalation of silver price due to its secure status, although to a lesser extent than gold. As a resource without profitability, silver tends to grow at lower interest rates. His movements also depend on how the US dollar (USD) behaves because the resource is valued in dollars (xag/USD). A forceful dollar tends to maintain the price of silver, while the weaker dollar will probably augment prices. Other factors, such as investment demand, mining supply – silver is much more ample than gold – and recycling rates can also affect prices.

Silver is widely used in industry, especially in sectors such as electronics or solar energy, because it has one of the highest electrical conductivity of all metals – more than copper and gold. An augment in demand can augment prices, and the decline tends to lower them. Dynamics in the United States, Chinese and Indian economy can also contribute to price fluctuations: for the USA, and especially China, their enormous industrial sectors apply silver in various processes; In India, consumer demand for precious metal for jewelry also plays a key role in setting prices.

Silver prices usually follow gold movements. When gold prices are rising, silver usually follows it because their status as secure assets is similar. The ratio of gold/silver, which shows the number of ounces of silver needed to equalize the value of one ounce of gold, can support determine the relative valuation between the two metals. Some investors can recognize a high ratio as an indicator that silver is underestimated or gold is overstated. On the contrary, low ratio may suggest that gold is underestimated in relation to silver.