Silver (XAG/USD) saw a significant decline on Tuesday, according to data from FXStreet. The precious metal is currently trading at $49.60 per troy ounce, down 5.42% from Monday’s price of $52.44.
Despite the sharp drop, silver has posted impressive gains this year, with prices up 71.66% year-to-date.
| Unit Measure | Silver Price in USD |
|---|---|
| Troy Ounce | $49.60 |
| 1 Gram | $1.59 |
Meanwhile, the Gold/Silver ratio—which indicates how many ounces of silver are needed to equal the value of one ounce of gold—rose to 85.91 on Tuesday, up from 83.07 the previous day.
Silver FAQs
Why do investors buy Silver?
Silver is a popular investment metal, valued for its role as a store of value and a portfolio diversifier. While not as sought-after as gold, silver is seen as a hedge against inflation and economic uncertainty. It can be bought physically (coins or bars) or traded via ETFs that track its market price.
What influences Silver prices?
Silver prices are affected by several factors:
- Economic and geopolitical uncertainty can increase demand due to silver’s safe-haven appeal.
- Interest rates play a key role—silver, being yieldless, tends to rise when rates fall.
- The US dollar is critical—since silver is priced in USD, a stronger dollar usually suppresses prices, while a weaker dollar boosts them.
- Other drivers include investment demand, mining supply, and recycling rates.
What role does industrial demand play?
Silver has extensive industrial use, especially in electronics and solar technology due to its superior conductivity. Economic activity in major economies like the US, China, and India affects demand: China and the US use silver heavily in manufacturing, while India contributes significant demand from the jewelry sector.
How does Silver react to Gold movements?
Silver often mirrors gold price trends, given their shared safe-haven status. The Gold/Silver ratio can signal relative value—when the ratio is high, some investors see silver as undervalued compared to gold, and vice versa.
