What factors affect the price of spot silver?

What factors affect the price of spot silver? Let our teacher explain to you.

1. Silver price is affected by supply and demand factors

Silver prices are based on supply and demand. If silver production increases significantly, silver prices will be affected and fall. However, if long-term strikes by miners and other reasons prevent production from increasing, then when demand exceeds supply, silver prices will appreciate.

2. Silver prices are affected by fluctuations in oil prices

When oil prices in the international market continue to rise, silver prices will continue to rise. The reason is the increase in oil revenues in oil-producing countries, which will affect the silver market demand.

At the same time, because current international oil prices are denominated in U.S. dollars, rising oil prices often lead to depreciation of the U.S. dollar, and depreciation of the U.S. dollar will cause people to buy silver to maintain value, thereby stimulating the rise in silver prices. Silver prices have risen.

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On the contrary, if oil prices continue to fall due to excess oil supply, it will have a significant impact on the decline in silver prices.

3. Silver prices are affected by industrial demand

About 50% of silver's annual demand comes from industry. Despite the rapid growth in investment demand, it still accounts for only 16.84% of total demand. According to GFMS' forecast, by 2015, the industrial use of silver will be close to 70% of its total demand.

The commodity attributes of silver will become one of the most critical factors that continue to affect the price of silver.

4. Silver prices are affected by the financial crisis and political turmoil in the international community

Fluctuation trends in the world economic cycle, changes in interest rates in the local market and international currency markets, fluctuations in stocks, foreign exchange markets and other investment markets also directly affect the fluctuations in silver prices.

At present, the price of my country's silver market is also restricted by the above factors, which is basically synchronized with the world.