Silver: a world leading underlying asset
Since time immemorial, silver has been used for a variety of purposes especially in the form of jewelry and currency. It actually has a great impact on major currencies and just like gold,has been consistently increasing its value. Just like gold, silver is also classified as a rarer and precious metal. Its price is very much dependent on its obtainability which means that if there is a major decrease in the production silver then its traded price is definitely going to increase. However, in recent years silver production seems to have stabilized particularly with the major mining companies. With the current trend, it would be easier to predict how it will affect the price of silver in the future.
Movements on the price of silver
There are many factors that affect the price of silver. First of all, silver is usually mined from minerals like zinc, gold and more particularly copper which is also a traded commodity. Copper is also an in demand product especially in the housing and real estate industry. It is primarily used in constructing houses so any fluctuations in the housing industry could affect the price of this commodity and the price of silver as well. If the price of copper goes up then expect to see a surge in the value of silver in the future.
The major property of silver being a conductive material makes it an in demand commodity in the electronics industry where it is primarily used in switches, circuits and solar panels. Another factor that affects the price of silver is the film photography market. Although this industry is not as bullish as the digital photography market, it still has a major effect on silver since it is still regarded as an inexpensive way of getting high-quality photos.
Trading silver with binary options
If you are trading on gold then it is best to keep an eye on the movement of its value since the price of silver is very much dependent on it. Although the connection between these two precious metals is not immediate, historical charts have proven that the price of silver follows the same track of the price of gold. Being a multipurpose metal, silver is indeed a high valued commodity in the financial market. Trading this white metal and calculating its future value can be easily done by focusing on the consumer and currency demands. And with the help of our recommended trading platforms, you will be able to monitor its current value, get real-time updates and make better trades.