The spot price of silver is determined by supply and demand, with factors such as economic trends, government actions, and manufacturing demand affecting it. The price is set by commodity markets such as COMEX and varies hourly.
The spot price of silver is the price quoted for immediate payment and delivery. Settlement and delivery of a silver transaction made at a spot price is typically executed within one to two business days. The spot price of silver is influenced by a number of factors, but at the most fundamental level it is purely a function of supply and demand. COMEX, a division of the New York Stock Exchange and the London Commodity Market, are the preeminent markets whose silver prices are used as the basis for trading, buying and selling around the world.
Precious metals such as silver, gold, platinum, and palladium are actively traded in many commodity markets around the world. The spot price of silver is set by these markets. Varies hourly based on supply and demand. As world demand for silver increases, the price rises, and as demand falls, the price follows. For hard goods like silver, the price is also influenced by market speculation about how supply and demand for the commodity will change in the future.
This very basic economic relationship is influenced by a number of factors, many of which are unique to a small group of precious metals due to their status as tangible assets and as a store of value. This is true despite the fact that many world currencies that were once backed by precious metals no longer use this collateral method. The global economic climate has a major effect on the price of silver. When economic trends are in a recession, many people turn to investments in precious metals, increasing demand and driving up prices. Inflation of major world currencies can also affect the spot price of silver.
Factors such as the opening and closing of mines, strikes by miners, and increases or decreases in production from large mines can affect the spot price of silver. World governments can influence the price of silver by buying or selling large quantities of the metal. During the 1950s, the United States sold large quantities of silver in a successful effort to keep the market price down. This was done to try to keep the market price of silver below the money price of silver in the United States.
The manufacturing demand for silver is another important factor in determining the spot price of silver. Silver is used in various industrial and manufacturing sectors, including the electronics and healthcare industries, as well as in photography and the manufacture of batteries, solar-powered equipment, mirrors, and tableware. Many other products and industries also use silver and your use of the metal has a direct effect on the demand for and therefore the price of silver.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
