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What Factors Influence the Silver Trading Price?

Just like gold, the silver trading price can be extremely volatile. This is because the asset refers to a store value. Investors have to carefully monitor the price movement to avoid bigger losses. They need to keep an eye on how much is silver trading for. Additionally, they need to take into account specific factors that may have a huge effect on the silver trading price.


What are those factors? What is silver trading at today? These are the questions we will try to answer in this article.

Factor #1 - Investors and Big Players

If compared to gold, the silver trading price is lower. At the same time, the silver market is smaller as well. For this reason, it is easier to influence and manipulate by bigger market participants and larger investors. Experienced traders remember the situation that took place back in 1980 with the Hunt brothers causing a spike with the London Silver Fix reaching $49.45 per ounce.

The same happened in 1997 after the purchase of 130 million ounces by Warren Buffet. These examples show how big players can have a direct impact on the silver trading price

Factor #2 – Silver Short-Selling

Short selling can be an instrument in others’ hands that is used to depress the silver trading price. Short selling is different from a traditional order. It operates as an incomplete transaction. The market has already witnessed the situation when four traders were able to hold more than 90% of all short-term silver futures contracts costing over $245 million per ounce.

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Factor #3 – Demand

When we say demand for silver, we mean not only consumer but also commercial and industrial demand. Industrial companies increase the need for this metal alongside jewellery producers. It may have a direct impact on the silver trading price today as well.

Additionally, silver can be used in many other fields. They include electronics production, water purification devices, healthcare gadgets and coin manufacturing, etc. With more and more products entering the market each day and new technologies evolving, the need for Nano-silver particles is growing as well. They have already turned into the dominating trend.

Factor #4 – Hedge

Just like gold or any other precious metal, silver can be used as a hedging tool against different types of financial stress. They may include:

  • Inflation;
  • Deflation;
  • Devaluation, etc.

We should also take into account a strong connection between silver trading price today and USD. If the USD index drops, the demand for silver goes up and vice versa.

Factor #5 – Gold Price

This factor is not as apparent and obvious as the previous ones. On the other hand, considering silver trading price history, it becomes clear that it can track the gold price movement at some point. Experts also notice that every time the gold price increases, the same does silver.

What Is Silver Trading at Today?

How much is silver trading for right now? This is the main question traders try to answer in regards to the geopolitical situation, not to mention the pandemic. The current price is $24.30 per ounce. The asset has shown a slight (0.10) growth over the last few days. The price per kilo is currently $781.25.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.