Like other commodities, silver is also affected by the relationship between supply and demand. When the supply is high and the demand is low, the value of silver tends to decline. On the contrary, high demand and low supply will lead to price increases. However, silver is also a safe-haven investment. Therefore, the price of silver is also greatly influenced by market conditions and global economic conditions. When the economic and market conditions are worrying, investors will use silver to protect their assets. Followed by rising demand and rising prices. When the economy and market conditions are high, the demand as a safe haven will drop again, leading to a decline in the price of silver.
Finally, like other commodities, silver is priced in dollars. Therefore, when the dollar appreciates, the price of bulk commodities will become more expensive, followed by a decline in demand and a decline in prices. On the contrary, when the dollar depreciates, the price-performance ratio of silver will become higher, the demand will rise, and the price will also rise.