Category: Silver

Silver: What Factors Affect the Silver Price?

silver barHere are some of the factors that affect silver prices:

Like gold, silver prices are affected by many of the same factors that affect gold, including the global economy, the strength/weakness of the U.S. Dollar, and supply and demand. But the price is more volatile than the gold price and, compared to gold, is more affected by industrial needs and by jewelry demand.


The following is a brief list of industries that require silver for production; automobiles, photovoltaics, photography, televisions, computers, electronics, superconductivity, water purification, solar, medical use, silverware manufacturing, coins and medals and of course, jewelry. Silver has extensive industrial uses, whereas gold does not.

In late 2012, The Silver Institute issued a report that estimates future industrial demand. Currently, with the continuing sluggish global economy, a downturn in industrial demand is forecast for 2012. However, a forecast recovery in 2013 will see these losses entirely recouped. Industrial demand is particularly strong for automobiles, photovoltaics, televisions, and personal computers.


The report predicts that during 2012-14, some silver industrial market segments will outperform, including the use of silver in ethylene oxide (EO) plants, which already experienced strong demand in 2012. Silver oxide is used as a catalyst to produce EO, which is then used as a key ingredient in a range of products such as polyester. It is projected that photovoltaic off-take to broadly stabilize in 2013 and robust demand in the use of silver in photovoltaics is anticipate in 2014.

Looking ahead, the report projects an estimated 6% rise in silver industrial demand, creating a new record high in 2014, which will account for an estimated 57% of total silver fabrication that year. A steadily improving economic outlook, strong growth in the automobile sector, and a recovery in the housing and construction industry are primary reasons for the forecasted uptick in demand, according to Thomson Reuters GFMS, which produced the report for the Silver Institute.


Regionally, over the past 10 years, the most notable change has occurred in demand from emerging markets, mainly China. China Chinaaccounted for just 8% of global  industrial demand in 2000, compared to a strong 18% contribution in 2012, and is expected to grow further. The report notes that U.S. industrial demand will remain particularly elevated, enhancing its position as a leading manufacturer of high-end silver materials.


Finally, one strong factor affecting the silver price is the mining cost of getting it out of the ground, which has been estimated at being in a range from $22 per ounce to $30 per pounce. Yields are falling, year by year, which puts upward pressure on mining costs; the average silver yield of the top six silver mines has declined 38% since 2005.

(Source: The Silver Institute) 


Anthem Vault: Invest in Gold and Silver


Anthem Vault provides U.S. residents with an efficient and liquid way to buy, own and sell physical 100% fine gold and silver bullion. GoldAll metals are securely stored with an independent world-class vaulting facility (est. 1859) in Salt Lake City, Utah and are fully insured by Lloyd’s of London (est. 1774) against loss, damage, or destruction caused from theft or natural disaster.


At Anthem Vault, we understand that you expect the best in security, efficiency and service – all at a reasonable price. These core principles are integrated into every aspect of Anthem Vault, and we pledge to give you the best possible overall experience in the precious metals industry.


If you open a free account, buy metal and are dissatisfied with our service for any reason, you will receive a no-questions-asked full refund (refund limited to first metal purchase, up to $10,000 within 60 days of purchase date).


Our U.S.-based support team is here to help answer your questions, and is fully trained to guide you through any issues or problems you might experience while using our service. Alternatively, see our FAQ page for quick answers to common questions. You can contact us by e-mail 24/7 or by phone during normal business hours of 6:30 a.m. to 1:00 p.m. Pacific Time (9:30 a.m. to 4:00 p.m. Eastern Time). Our full contact information can be found on our Contact Us page.


You can buy parts of a bar or full bars, with a minimum purchase amount of $25 up to a maximum purchase amount of $5 million per order. All gold is held in the form of 1-kilogram (32.15 oz) bars .9999 fine. All silver is held in the form of COMEX approved 1,000 ounce bars .9990 fine or higher. All gold and silver bars are produced by globally recognized LBMA-approved refiners.


Anthem Vault’s offices and experienced operations team are based in Las Vegas, Nevada. The company is incorporated as a Nevada corporation under the name of Anthem Vault, Inc. and it is regulated as a precious metals dealer by the USA Patriot Act.


The Blanchard name stands for trust, integrity and security in the precious metals business, and it has done so since 1971, starting with the father of Anthem Vault Founder & CEO Anthem Hayek Blanchard. James U. Blanchard III bravely fought for Americans’ right to legally own gold and spent the next three decades championing the inherent value of precious metals, simultaneously growing a core group of successful bullion, coin and investment conference companies.

A respected precious metals industry expert for many years in his own right, Anthem Hayek Blanchard and Anthem Vault continue this fine tradition today, putting to good use the accumulated knowledge and expertise in precious metals and investment strategies, while our cornerstone Anthem Vault Standard secures, protects and insures your gold and silver assets. A safeguarded and encrypted account with Anthem Vault offers an easy, safe and secure way to buy, sell and store fully insured gold and silver, enabling you to accumulate and preserve real wealth in these troubled times.