As the title might have already implied, this webpage is dedicated to analyzing the price of silver per ounce here. While the interest for silver investments is at an all-time high, you might be surprised to know that not everyone is well versed with looking at and interpreting the curves that represent the price of silver per ounce. In plenty of cases, people look at the spot price of silver for the day and decide, from there, whether to buy or sell silver assets without looking at how the price can behave in the succeeding days. Read more information from my latest blog post.
In this page for price of silver per ounce, we will appropriately dedicate a section on how to interpret silver prices in order to help investors get information that will prove useful for their transactions. However, that is not the subject of this introductory post. Instead, we will look at the prices of silver today here and assess the factors that help to drive the prices up or down. In essence, we are assessing the price of silver from the perspective of market economics; believe us when we say that may sound big and technical but the concepts are easy enough to understand that there is no doubt you can follow through in order to put that knowledge in a position to benefit your silver investments.
The first thing to remember is that the price of silver, per ounce, behaves just like any stock price would. Every day, silver prices are subject to standard market dynamics and it is this situation that determines whether the price of silver goes up or down.
The great thing with silver prices, however, is that it is not exclusively tied up with one company. When you consider investments in stocks, you are at the complete mercy of a specific company’s performance. Say you put money in Apple stocks; if Apple’s financial performance for a quarter is down from projections, then you can expect a corresponding decrease in the company’s stock price and this in turn affects your investment. In essence, a company’s stock is exclusively controlled by how a company runs its business and any perceived weakness of under performance creates a ripple effect on the stock price.
With silver, and all other precious metal spot prices for that matter, the investor is relatively insulated because the spot price is not based on one single factor alone. If Company A falters for some reason, there are plenty of other considerations that might be sufficient enough to offset Company A’s performance.
To cut the story short, these are the factors that closely influence the price of silver per ounce here:
Supply. This is where a company’s performance can significantly affect silver prices but not in a way that you would expect. There are not that many big silver mining companies in the world so reduced performance by one company can alter the supply dynamics for silver. But the opposite effect is typically in display for these situations. Instead of the price of silver going down when Company A falters, the spot price actually goes up to reflect the shortage in supply. If there are lesser silver to go around, then each ounce of silver becomes all that more valuable.
Demand. The other half of the factor has to do with the demand. Is it a season for high silver consumption? If so, that can mean that there are fewer silver to go around and, using the same logic, each ounce becomes all the more valuable. Many investors falsely think that silver is only useful for making coins or jewelry but the truth is that 90% of the newly mined silver worldwide goes towards industrial applications and this is the primary determinant for the strength of the demand. When companies that use silver in their processes increase production targets, the demand for silver goes up because it gets used in greater and bigger quantities.go to http://www.mineweb.com/news/silver/silver-investors-corner-the-market-not-jp-morgan/ for more detailed information about silver investors.
The Intangibles. Many factors can change the way the market perceives the importance of silver. An oftentimes overlooked factor is legislation dedicated to encouraging or undermining silver mining practices. If countries legislate laws to regulate open pit mining, this can put a serious strain on many silver mining companies affecting their bottom line and their production increasing the price of silver. Conversely, silver-friendly legislation encourages silver production and lowers the price to allow for healthier investments in silver.