The spread is as low as 0.03 pips, the average spread is 0.035 pips.
Silver is a precious metal that has been enjoyed for various purposes in history.
It is well known that it can be applied in the form of jewelry, silverware and currency. Metals are usually extracted from copper, silver and zinc ores.
Silver as an investment is available in many different forms, including silver paper and ingots.
Silver prices are widely watched in financial markets around the world. Many investors are constantly looking for safe assets in the face of stock market volatility and increasing volatile political background.
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Silver is a precious metal mined in mines around the world. Mexico is the country with the highest silver mining volume, with an average of 180 million ounces mined annually. Due to the variety of uses of white metal and the premise of a finite stock, it is considered to be a highly tangible asset and is traditionally called a safe haven asset.
Since ancient times, silver has been used as a material for money and jewelry. With advances in research and new technology, it has also been used in industrial, medical, and technical fields. Approximately 60% of silver production is used in these areas, comparable to the 20% used in jewelery. Also, about 8% of silver is used for investment purposes.
Like most commodities, the price of silver is generally influenced by supply and demand, and speculation. Factors that affect the price of silver include:
Technology and industry
Silver is a ductile and malleable metal. It is also widely used in the manufacture of electronic components due to its excellent energy and electrical conductivity. If the demand for precious metals in these industries increases, the price of silver will skyrocket. Conversely, if demand decreases, prices may decrease.
The field of telecommunications is constantly evolving with the development of other new technologies. The launch of 5G networks has the potential to increase demand for silver. Because silver is one of the key components for manufacturing transmissions.
The release of various economic data from around the world can affect silver prices. For example, manufacturing Purchasing Managers Index (PMI) data is an indicator of the reliability of silver demand.
Social and political factors
Socio-political events can also have a direct impact on silver prices. In 2020, the COVID-19 pandemic and global lockdown forced the silver mine to stop producing silver. Production fell by about 6%, while investors’ interest in silver, a safe haven, increased and silver prices rose. According to the “World Silver Survey 2021” released by the Silver Institute, the net investment in silver ETP in 2020 has soared to 298%.
Application to renewable energy
As the popularity of environmentally friendly renewable energy products grows, the demand for silver may increase as silver materials are used in the manufacture of solar panels and electrical connections in electric vehicles. By 2020, demand for white metal will increase by approximately 20%.
Silver is a precious metal with a limited supply and is considered a safe asset. This means that value is expected to be maintained and increased even in times of global turmoil and uncertainty. Investors can use this asset to hedge their investment portfolio against the potential devaluation of the financial asset.
One way to invest in precious metals is to trade silver CFDs. This way you can get exposure to the price of silver without having to buy any assets. You can also guess the price direction of this asset and profit from a fall or rise. If you think the price of silver will go down, you can have a sell position, and if you think it will go up, you can have a buy position.
Silver mining dates back more than 5,000 years to prehistoric times. The exploration boom of the 16th century opened new mines and increased production. In addition, due to the Industrial Revolution, the use of silver has expanded and silver mining has become popular. The discovery of new deposits in the United States, Asia and Europe between 1900 and 1920 increased global silver production by 50% to 190 million ounces.
However, due to the stock market crash of 1929 and the Great Depression, precious metals crashed. From 1932 to 1934, silver fell to an all-time low of $ 0.25 per ounce. The 1979 oil crisis has raised silver prices from $ 5 to $ 49 per ounce. Commodity prices generally recovered during this period.
In 2011, after the US debt cap, silver rose to nearly $ 50 again, but this is the second time it has reached this high in more than 30 years. Then, in the 2000s, silver prices began to fall. In 2020, the outbreak of Covid-19 caused silver prices to rise again. In February 2021, precious metal prices rose to $ 30 an ounce, the highest in eight years.
Euro prices are affected by the release of economic data and reports, interest rate decisions, changes in monetary policy by the ECB (European Central Bank), and geopolitical events occurring within the euro area. At the same time, events outside the euro area can also affect the prices of European Community currencies.