Silver price history

Silver, alongside gold, is one of the most recognisable precious metals known for its thermal and electrical conductivity. While not as highly prized as gold, silver has been used since antiquity as a store of value as well as a manufacturing material. Today most silver is utilised for industrial purposes such as solar panel manufacturing, jewellery, electronics, and semiconductors but it still represents a safe-haven investment in times of uncertainty. The price of silver is quoted in troy ounces.

Silver historical data shows that the price can be quite volatile. Comparing the silver chart history with that of gold will show a strong correlation in upward movements as both commodities tend to see increasing demand at the same time, either due to economic uncertainty or increasing industrial activity. The downturn caused by the coronavirus pandemic also led to serious disruptions in supply chains and mining operations which affected supply and increased the value.

Silver historical prices show that the all-time high of $49.45/oz was reached on January 18, 1980 followed by a substantial crash to as low as $8.03 the following year. Looking at silver price history you can see that it wasn’t until 2008 that silver surpassed the $20 mark again. In early 2021 silver prices traded within the 52-week range of $11.69-$29.97 and are at near eight-year highs.

What factors affect the price of silver?

There are multiple macro-economic factors which affect nearly all commodity prices to some degree. These are things such as consumer confidence, unemployment and geopolitical dynamics. In the case of the silver price history there are four main factors which have influenced the performance of the commodity. These are:

• Economic outlook

Silver, like gold, is considered a safe haven in times of geopolitical risk or economic downturn. When facing uncertain economic outlooks investors will increase their holding of silver as a store of value in an attempt to mitigate financial risk associated with less liquid assets.

• Supply and demand

Silver is usually acquired as a by-product of other mining or refining operations. As such the supply fluctuates in tandem with the demand for other resources such as copper, gold and zinc. Mexico, China and Peru are the top three producers of silver and any disruption in their national economies can also wreak havoc on the supply. Demand is heavily influenced by the industrial manufacturing outlook as well.

• Inflation

Silver price history shows that in times of increasing inflation prices of the commodity will increase. Investors seek to exchange their current fiat currency for commodities in the hope that the value of the commodity will increase in line with inflation.

• Interest rates

Interest rates and overall monetary policy play a huge role in determining the perception of the economy overall and the likelihood of inflation. The current level of quantitative easing, and record low interest rates, is unprecedented and designed to avoid deflation. This decreases the attractiveness of other safe-haven investments such as government bonds and increases the attractiveness of silver.

Why look at historical data?

Traders can view silver historical prices on the silver price chart history. Analysing historical data can provide valuable information regarding the past performance of the underlying asset, in this case the silver price, during different economic or political scenarios. For example, looking at silver historical data during significant economic downturns and comparing them you can gain insight into how the underlying cause of a recession will affect the price differently. Analysing the silver chart history is also a valuable tool for traders looking to perform a more thorough comparison of stock price based on qualitative or quantitative analysis.

Historical data is also a valuable tool in correlating potential future growth with the current price. By comparing the silver price history increases to economic increases you can gain insight into the effect of different industrial trends. Silver is an integral component of solar panel manufacturing and as such increasing demand for green energy is likely to put upward pressure on the price. The silver price history chart is also valuable in comparing performance with other companies or indicies as well as annual average prices. By reviewing the data, a trader can see that the silver price averaged $20.52 in 2020 and $16.19 in 2019.

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Trade Silver Spot - Silver price chart