First, the impact of the US dollar exchange rate on the silver price.
Generally, in the spot silver market, the dollar rises and the price of silver falls; When the dollar falls, the law of silver price rising. A strong dollar generally means that the domestic economic situation in the United States is good, domestic stocks and bonds in the United States will be sought after by investors, and the function of spot silver as a means of value storage will be weakened; The decline in the exchange rate of the US dollar is often related to inflation and the stock market downturn, and the value-preserving function of spot silver is once again reflected. This is because the depreciation of the dollar is often related to inflation, while the value of spot silver is high. In the case of the depreciation of the dollar and the intensification of inflation, it will often stimulate the preservation and speculative demand for spot silver.
Second, the impact of inflation on the price of silver.
If the price rises sharply in the short term and the purchasing power of monetary unit decreases, the price of silver will increase obviously. However, if the inflation rate is within the normal range, the fluctuation of silver price is not affected by inflation.
Third, international political turmoil, wars, etc.
Major international politics, wars and other factors will affect the fluctuation of silver price, and a large number of investors will invest in silver, thus expanding the demand for spot silver and stimulating the rise of silver price.
Fourth, the monetary policies of various countries are closely related to the reasons for the sharp drop in silver prices.
When a country adopts a loose monetary policy, it will lead to an increase in the country's money supply and the probability of inflation, which will lead to an increase in the price of silver.
Verb (abbreviation of verb) The influence of the stock market on the price of silver.
Generally speaking, when the stock market falls, the price of silver will rise. This mainly reflects investors' expectations of economic development prospects. If everyone is generally optimistic about the economic prospects, a lot of money will flow to the stock market, and the investment enthusiasm in the stock market will be high, and the price of silver will fall.