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Factors Affecting the Price of Silver

Silver is a special precious metal with dual properties of commodity and finance.

Supply side:


 (1) Silver inventory: There are currently about 137,400 tons of spot silver in the world, and is still growing at a rate of about 2% every year.

 (3) Silver mining: the cost of silver mining, the application of new silver mining technology, and the discovery of new mineral deposits will affect the supply of silver, thereby affecting the price of silver.

 (4) Political, economic and military changes in spot silver-producing countries: affect the quantity and progress of mine mining, and then affect the world’s spot silver supply.

The production stoppage of some silver mines in recent years has reduced the amount of silver mined.

2. Recycling:

(1) Rising silver prices will increase the amount of recycled silver, and vice versa.

(2) Spot Silver Selling by Central Banks: The main use of silver has gradually changed from an important reserve asset to a metal raw material for the production of jewelry; in order to improve the country’s balance of payments; or to restrain the international gold price, the central bank sells the stock and reserve spot silver in the spot silver market, which directly causes the price of silver to decline .

3. Transportation: In recent years, logistics bottlenecks have affected the circulation of silver

Demand side:

 1. Asset preservation: Expectations of global inflation and economic recovery have intensified the market’s demand for silver; secondly, a series of fiscal stimulus measures introduced by the US government and the Federal Reserve’s maintenance of low interest rate policies have also stimulated investors to buy silver as a safe-haven asset.

 2. Industrial demand: With the development of photovoltaic industry, the average annual increase of silver paste is about 800 tons, which drives the demand for silver.

Post time: Apr-26-2023