Key Takeaways:
- Silver prices rose on Friday, with XAG/USD trading at $28.32 per troy ounce.
- Prices have increased by 11.19% since the beginning of the year.
Silver Prices Rise
Silver prices (XAG/USD) saw an increase on Friday, trading at $28.32 per troy ounce, up 0.28% from Thursday’s price of $28.24.
The Gold/Silver Ratio
The Gold/Silver ratio, which indicates the number of troy ounces of Silver required to equal the value of one troy ounce of Gold, stood at 84.19 on Friday, a slight decrease from 84.24 on Thursday.
Investors often consider this ratio to assess the relative valuation of Gold and Silver. A high ratio might suggest that Silver is undervalued or Gold is overvalued, potentially leading them to buy Silver or sell Gold accordingly. Conversely, a low ratio may indicate that Gold is undervalued relative to Silver.
Silver FAQs
Silver is a precious metal commonly traded among investors, valued as a store of value and medium of exchange. Investors may turn to Silver to diversify their portfolios, capitalize on its intrinsic value, or hedge against high-inflation periods by purchasing physical Silver or trading it through Exchange Traded Funds.
Factors impacting Silver prices include geopolitical instability, financial recessions, interest rates, US Dollar performance, investment demand, mining supply, and recycling rates. Silver’s utility in industries such as electronics and solar energy also influences its price, as does economic activity in major markets like the US, China, and India.
Silver prices typically follow Gold’s movements due to their shared safe-haven asset status. The Gold/Silver ratio is often used to gauge the relative valuation between the two metals, with a high ratio potentially indicating that Silver is undervalued or Gold is overvalued, and vice versa.