Today’s Silver Price
Known as White metal, Silver has more worth than the conventional currencies. Therefore, it is also used by investors to hedge against economic crises.
But what really causes the increase and decrease of Todays Silver Rate?
Read all about it below!
Factors Affecting Silver Price
Before searching for Silver Price Today, you should know about all the major factors that affect the price of silver.
Check out all these factors below!
Supply and Demand For Silver
The supply and demand is the biggest reason behind variations in Silver Price Chart. Being the metal is so valuable: supply is limited but demand is constant.
Increase or decrease in supply or demand of the silver metal moves prices.
For example, if the production of silver metal stops due to any reason (here, we’re talking about a mine which is a major producer), silver prices may spike over the short term.
Likewise, if silver starts getting used in new technologies such as solar panels equipment, prices will rise because it will generate more buying needs.
Applications Of Silver
Did you know that photography, jewellery and silverware categories represent around 80 per cent of the annual silver consumption?
Demand for the silver is also based on its industrial usage. Silver is used in electrical contacts, conductors, and mirrors. It is also used as a catalyst in chemical reactions as well as to make dental alloys and coins.
Silver Production In India
Did you know that India is one of the world’s largest silver markets?
In 2016, India consumed around 160.6 million ounces: 16 per cent of global silver demand.
In India, silver jewellery and silverware fabrication account for more than 50 per cent of total demand for silver.
Indian is dependent on imported metal to satisfy silver requirements. In 2018, silver imports reached nearly 225 million ounces (35% higher compared to 2017).
Top 3 silver-producing mines in the world are located in Cannington (Australia), Fresnillo (Mexico), and San Cristobal (Bolivia). However, major quantity of silver comes from Mexico, Peru, China, and Australia.
Two-thirds come as a by-product of the mining of metals like gold, copper, lead, and zinc.
In fact, In India, most of the silver is produced as a by-product of zinc mining at HZL (Hindustan Zinc) in Rajasthan.
HZL (Hindustan Zinc) has five operating mines: Rampura Agucha, Rajpura Dariba, Zawar, Kayad and Sindesar Kurd (HZL’s most silver-rich mine and is responsible for the majority of its silver outturn).
Silver scrap plays an important role in determining Todays Silver Rate.
For example, earlier, photography consumed massive amounts of silver (because the metal has good light-sensitive characteristics). Nowadays, as non-silver photography is being used, there is less demand for silver.
Therefore, there has been a very large stockpile of photographic film and these film rolls have been recycled for its silver content.
National and Global Economic Trends
National and Global Economic Trends play an important role in the variations of Todays Silver Rate.
Just like Gold, Silver is considered to be a safe investment. This means that silver has better purchasing power than paper currency when it comes to economic uncertainty.
If economic concerns rise, there is usually significant upward pressure in prices for silver.
However, a strong economic condition may decrease demand for silver which means the prices of silver may fall.
Active economy causes a greater demand for silver in industry.
Thus, the economy plays an important role in deciding Todays Silver Rate.
As mentioned above, silver is used by investors to hedge against inflation. Inflation erodes the value of the paper currency; therefore, silver is used as the protection against such losses during inflation.
Silver scrap plays an important role in the variations of Silver Price Chart.
The price of silver is inversely proportional to the U.S dollar.
A strong dollar creates pressure on the price of silver which means the price of silver decreases.
Price of gold and silver are interconnected. This means that when the price of gold increases, silver prices also increase.
Silver’s market prices are inversely proportionate to the level of interest rates. The level of interest rates is an indication of overall market conditions. Investments in silver metal are not made to get a current return; therefore, investors opt for interest payments instead of holding the metal for long-term appreciation.
Therefore, interest rates play a major role in the variations of Silver Price Chart.
Silver prices are affected by existing and new technologies. Many of these new technologies use silver for its characteristics that are found only in this metal. Silver’s amazing physical properties make it virtually irreplaceable.
Properties: Silver is used as both precious metal and industrial metal. The unique properties of silver include its strength, malleability, ductility, electrical and thermal conductivity, light reflection, sensitivity, and reactivity.
Policies By Government
Policies by Government play an important role in the variations of Silver Price Chart.
Silver markets are influenced by government actions and policies. Central banks around the globe buy and sell silver because Gold gets most of the attention as a reserve.
Factors such as geopolitical events and behaviour of the currency also affect the silver price in India.
How To Invest In Silver?
You can invest in silver in 2 ways. Check out these ways below!
- The first way is to invest in physical form such as silver coins, silver jewellery, silver bars, etc.
- The second way is to invest in silver through the commodity market or exchanges like MCXNSE 6.21 % and National Spot Exchange
So, these were the major factors affecting the price of silver. Do you know any other factor that may affect the price of Silver? If yes then drop comments and let us know about it!