Factors that Effect the Silver Price

FACTORS THAT AFFECT THE PRICE OF SILVER Just like gold, silver is also a precious metal that is considered a good investment. Know the factors that affect the price of silver. Industrial Demand for Silver Silver has become very popular in the manufacturing sector. Requirements are coming in from manufacturers of electronics, producers of medical equipment, etc. which has led to the demand for silver rising considerably. Strengthening of the US Dollar %24 Since the last depression, the US dollar has been rising steadily. It is trading in the region of Rs. 61 to the dollar, which is making the procurement of silver more expensive. This, in turn, is affects the price of silver. As the dollar gains strength, the price of silver rises and as it falls so does silver. Gold Prices There is no hard and fast rule for this but it has been noticed that the price of silver tends to follow the same trends as that of gold. Large Investments The market for silver is not as big as that for gold and that is why unusually high transactions tend to affect its price. This fact has been seen twice, first in the 1980's when the Hunt Brothers bought vast quantities of silver and silver futures which forced the prices up to an all-time high of $48.70. DETERMINING WHAT TREND THE PRICES OF SILVER WILL FOLLOW IS NOT AN EASY UNDERTAKING BUT IF THESE MARKERS ARE FOLLOWED THEN IT BECOMES MUCH EASIER TO UNDERSTAND IF THE PRICE OF SILVER WILL RISE OR FALL.