Silver: Demand, Supply, and Price
Silver is one of the oldest precious metals and has had multiple uses throughout the centuries. It’s mined in many different countries, with Mexico having the largest volume of silver present in their federal reserves. The US, Canada, Peru, and Chile also have substantial silver stockpiles.
Silver has historically had many uses, most notably as coins. In recent years silver has been used for everyday items such as electronics, batteries, and industrial equipment. Let’s examine silver further by focusing on its demand, supply, and price.
How Much Silver is Out There?
Silver used to be one of the most prevalent substances in the world. Most countries in the world for centuries used silvers for coinage and currency. However, over the years, government stockpiles of silver have declined substantially.
Many precious metal experts now believe that silver could be one of the first precious metals to go completely extinct. There are several reasons for this. Firstly, mines, where silver is presented, have dropped significantly from its heyday a century ago.
Furthermore, the vast majority of silver is found in combination with other elements. Therefore, silver needs to be isolated, a time-inducing process that takes up a lot of labor.
What is the Demand for Silver?
According to recent trends, there is an ever-increasing demand for silver among the general population.
As the supply of silver falls, it becomes rarer and, therefore, more precious, contributing to its demand. Furthermore, silver is now being extensively used in the manufacturing industry, where large quantities are required.
Additionally, as climate change accelerates worldwide, many countries are using silver for solar panels to combat climate change.
The tech industry also uses silver for electronic equipment, cell phones, and tablets. Lastly, a lot of medical equipment also requires a steady supply of silver. With such broad uses, the demand for silver is high and is only set to increase.
Silver has a very volatile and fluctuating price. This is primarily because compared to other precious metals, like gold, the mark value of supply is relatively low. Therefore, depending on the circumstances, the prices can vary quite a bit. Generally, when the US dollar price is high, silver is low and vice versa.