Categorized | Commodities

The Fluctuations of the Silver Commodity Price


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Conditions that effect silver commodity price

 

silver commodity priceAs with other limited resources, the silver commodity price is a result of myriad marketplace factors. Price was once a fixed ratio in comparison to gold, silver has gradually reverted to a liquid value. The two most important aspects affecting the price of silver are large traders and investors that attempt to set the price by cornering the market and industrial manufacturing demands. The many uses for silver ensure that it will always be in some level of demand, however, the price at which it is bought and sold is a slave to global market conditions.

Manipulating the silver commodity price

If a single investor or company purchases or acquires the majority of a particular commodity, it is said to have cornered the market. In these cases, the demand for the commodity has remained constant but the supply does not necessarily come. Owners of this stock may then set the price of the commodity at whatever level they choose since they own the majority of it. One trick is to purchase a large number of future contracts of said commodity and sell them after the price has been inflated.

Industrial, commercial and consumer demand also play a large role on the silver commodity price. Silver has several noteworthy characteristics that keep it in high demand in the manufacturing field. Silver has the lowest resistivity of all industrial metals, is the highest reflector of light, and possesses certain antibacterial properties. These properties make it especially popular with manufacturers producing appliances, photovoltaic cells, and a variety of applications in the medical field. The high demand for the element will inevitably drive up the price significantly.

While the silver has steadily risen since 1870, never before has it seen the high it is at today. Experts predict that by the growing industrial need for silver and large firms buying it up to hedge against financial stresses, silver commodity price will surge again.

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