Silver price and charts

Factors that influence the price of silver:

• The popularity of precious metals - Interest in precious metals is not just the preserve of Asian giants, but of the entire world. They represent a symbol of luxury and protection of wealth against negative impacts. Not only for these reasons, they will always play an important role in the development of global demand.
• Mine production - silver resources are limited and it must be accepted that they are gradually running out. The downturn in the mining sector and the consequent reduction in silver production will have an impact on price increases, as will the future tightening of national environmental legislation.
• China's silver demand - China is the largest consumer of silver today. Its industry claims around 18% of global demand. The market for silver jewellery and other valuables is also significant. China's dependence on silver is compounded by the fact that it is the second largest producer of silver and a key processor of the metal at the primary raw material stage.
• Industrial demand - is fundamental to the price of silver. The shift to greening is particularly evident in the photovoltaic sector, which currently accounts for 10% of global demand with a forecast for further growth. Not negligible is the use of silver in automotive production, which is expected to climb to 70 million ounces by 2030, up from 45 million ounces in 2017.
• Limits of the investment metals market - a surge in interest from new investors is boosting demand and with it prices.
• Inflation and indebtedness - individual countries are fighting inflation, mainly by raising interest rates at the central bank level. However, high interest rates slow down the economy and open the imaginary financial spigots of inflation, triggering other threats
• The Fed's monetary policy - the development of interest rates by the US Federal Reserve (Fed) also affects the price of precious metal. When interest rates are high, the attractiveness of the dollar increases, which is unfavourable for the price of the metal, whose value in dollars usually starts to fall or stagnate.
• Geopolitical events - conflicts, instability in relations between countries and other global events may be another key factor in increasing demand for precious metals, including silver
• So-called "bubbles" in the markets - speculative estimates carry a great deal of risk. Valuations of certain assets and liabilities do not replicate reality. We have seen the consequences in the recent past - markets collapse, big banks fail and the only real value left is the precious metal.
• Black swans - today's society is full of problems, risks and pitfalls that create uncertainty about the future. The established order can be completely overturned from one day to the next. We have experience of the consequences of pandemics or war conflicts that will be felt not only by Western countries but by the whole world. These fears increase the interest in precious metals, which offer a certain degree of security.
• The gold : silver ratio - the current price of silver is undervalued and can be compared to the price of gold. The September 2023 figures are around a ratio of 1:83, one of the highest in over 100 years. The record of 1:120 was set in March 2020, when the ratio set overtook the wartime balance of 1:97 set in 1940 and 1941. The truth that silver is an undervalued metal is evidenced by the fact that the ratio of gold to silver in the earth's crust is about 1:15.