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Silver Price

Silver, like other precious metals, may be used as an investment. However, silver price has been volatile and has been influenced by many factors.

What is silver price?

Silver price is basically the market value of silver. Silver price may be influenced by various factors such as supply and demand, concentration of shares, investment demands, and state of economies.

Silver Price: Supply and Demand

If there's an increase in the demand for silver more than what's available at prevailing silver price, then traders will bid the silver price up. However, if there is decline in the demand for silver than what's available, then traders will bid the silver price down.

Silver has properties such as strength, malleability and ductility, electrical and thermal conductivity, sensitivity to light and the ability to withstand extreme temperature makes it one of the most sought metals by various industries. Such properties may increase industrial demand for silver, which may directly affect silver price in the market.

Silver Price: Concentration of Shares

Another factor that may affect the silver price is concentration of shares. If silver stocks or shares are held by a few traders, there is high tendency that the silver price may be manipulated.

To avoid silver price manipulation, stock exchanges may issue position limits that prevent unrestricted access to silver market. Position limits issued by stock exchanges control the number of contracts that a person or entity can purchase per month. Whereas position limits may prevent silver price manipulation by the few major stocks and shareholders of silver, it restricts market freedom and creates market distortions. Consequently, it would still affect silver price in the market.

Silver Price: Investment Demands

Due to the increased silver consumption in various industries, more and more investors are looking at silver as viable investment options. Silver price may be directly influenced by the increase in investment demands. Given the limited supply of silver in the market, the upsurge in silver investments may result to the exponential silver price increase.

Silver Price: State of Economies

The state of world economies directly influences the silver price. The silver price often track prices of other commodities for certain periods. For instance, when oil prices rise, silver price tend to follow suit as investors start to hedge in gold or silver stocks. When crude oil prices fall, silver price tends to fall, too.

Money devaluation may also affect the silver price. Silver price is tied closely to the decline of the US dollar. Silver and gold are usually utilised as hedge against declining currency.

Silver Price Articles

Broken Hill, where giving keeps going

THE Broken Hill zinc/lead/silver mine in outback NSW keeps on giving after more than 124 years of production. Perilya, which acquired the operation seven years ago on the basis the deposit had another five years of reserves, has now extended the estimated mine life by another 10 years.

Double Treat Shields Oxiana

FRESH exploration excitement at its Prominent Hill copper/gold project in South Australia and a deal with Indonesia's Antam on the Martabe gold/silver project shielded Oxiana from the worst of the sharemarket rout.

Hi Ho Silver, Away

IF you are driving the Hunter's favourite car of last year it is probably a Holden Commodore (one of 57,307 sold Australia-wide in the year). Silver (the world's favourite car colour for seven straight years). Automatic (about 90 per cent of Commodores sold in the Hunter are automatic). It cost between $34,000 and $60,000 (there are..read more

Fuel Costs Weigh Heavily But The Cloud Over Qantas Has A Silver Lining

Geoff Dixon has been in Istanbul this week with other airline executives from around the globe swapping stories on the financial chaos that has engulfed the industry, thanks to the skyrocketing price of fuel.

Price Expects Fantastic Outcome

NOTHING emerging star Light Fantastic has accomplished over the past 18 months has surprised trainer Mick Price. The striking grey with the silver mane is a dominant favourite for Saturday's Cadbury Guineas at Flemington in which Price will also start handy three-year-olds Schilling and Sound Journey.