Silver price today: down June 20

Silver is a highly traded precious metal among investors. It has historically been used as a store of value and a medium of exchange. Although less popular than gold, traders may turn to silver to diversify their investment portfolios for its intrinsic value or for potential hedging during periods of high inflation. Investors can purchase physical silver in the form of coins or bars, or trade it through vehicles such as Exchange Traded Funds, which track prices on international markets.

The price of silver can move due to a variety of factors. Geopolitical instability or fears of a severe recession could cause silver’s safe haven status to push its price higher, albeit to a lesser extent than gold. As a non-yielding asset, silver tends to rise when interest rates fall. The movement will also depend on how the US dollar (USD) behaves when the asset is priced in dollars (XAG/USD). A stronger dollar tends to suppress silver prices, while a weaker dollar is likely to spur prices higher. Other factors such as investment demand, mining supply (silver is much more abundant than gold) and recycling rates can also affect prices.

Silver is one of the most electrically conductive metals than copper and gold, which is why it is widely used in industry, especially in areas such as electronics or solar energy. When demand surges, prices can rise, and when demand falls, prices tend to fall. Dynamics in the U.S., Chinese and Indian economies may also contribute to price movements. In the United States, and especially in China, large industrial sectors use silver in a variety of processes. In India, consumer demand for precious metals for jewelery also plays an important role in determining prices.

Silver prices tend to follow the movements of gold. When the price of gold rises, silver usually follows suit because of its similar status as a safe-haven asset. The gold/silver ratio, which indicates how many ounces of silver are needed to equal the value of one ounce of gold, can help determine the relative value between the two metals. Some investors may view high ratios as an indicator that silver is undervalued or gold is overvalued. Conversely, a low ratio may suggest that gold is undervalued compared to silver.