Silver (XAG/USD) experienced a decline on Thursday, with prices trading at $32.40 per troy ounce, a decrease of 1.11% from the previous day’s price of $32.76. Year-to-date, silver prices have increased by 12.14%. The gold/silver ratio increased to 102.61 from 102.04 on Wednesday.
Silver is a precious metal actively traded as a store of value and medium of exchange. Investors may diversify portfolios with silver, seeking intrinsic value or a hedge against inflation. Investment options include physical silver (coins, bars) and Exchange Traded Funds (ETFs).
Silver prices are influenced by geopolitical instability, recession fears, and interest rate movements. Lower interest rates tend to increase silver prices. The value of the U.S. dollar (USD) also impacts silver, with a stronger dollar typically suppressing prices and a weaker dollar supporting them. Investment demand, mining supply, and recycling rates are additional factors.
Industrial demand, particularly from the electronics and solar energy sectors, significantly affects silver prices. Economic activity in the U.S., China, and India can also influence price fluctuations.
Silver prices generally correlate with gold price movements due to their shared safe-haven asset status. The gold/silver ratio can indicate relative valuation between the two metals, with a high ratio potentially suggesting silver undervaluation and a low ratio suggesting gold undervaluation.
