What Affects Silver Prices?
The price movement of silver tends to follow the gold price. So it can be said that the price of gold is positively correlated to the increase in the price of silver. But before that, if you want to buy or make handmade silver jewellery, you can visit our website now.
Here are some things that affect the price of silver in the market:
– The volume of Gold Inventory
If the news comes that gold inventories are falling, investors will switch to buying silver. So it could be negatively correlated with the volume of gold inventory, though rare.
– Silver Consumption by Industrial Sector
Unlike gold, silver has become a key component in the industry, up to 40%. This is due to the silvery nature that is easy to conduct electricity. This silver serves as a mixture of a wide range of products, such as computers, vehicles, electronics, medical, photography, as well as a mixture of preservative, clothing, germ, and wood products, food and beverage, textile, water purifier, weaponry. When production activities of these products decreased, the price of silver also fell.
Because silver investment is also in demand by investors, when gold prices are too high, silver cannot be avoided as an investment tool for investors and world traders. Starting from America, Switzerland, Australia, Canada, China, and Singapore.
– The Influence of World Economy
The price of gold and silver may depend on the world economy, for example, the condition of the rise of the American economy that has the potential as a strong negative sentiment for the price of gold and silver. Good American economic conditions, giving a higher return potential in the US market than safe-haven assets. As a result, interest in gold and silver was reduced, and there was a weakening in prices.
In terms of price, silver is cheaper on average under gold. Silver is, therefore, more affordable as an investment and collection in larger quantities. As a companion of gold, silver prices always follow the increase or decrease in gold prices.