Supply and demand: The price of silver is based on supply and demand. If the output of silver increases significantly, the price of silver will be affected and fall back. However, if the output of silver stops increasing, the price of silver will appreciate when the supply exceeds the demand.
International relations: When there is a war in the world, the government will pay for the war or maintain domestic economic stability, and a large number of investors will turn to the preservation of gold and silver, thus expanding the demand for silver and stimulating the price of silver to rise.
US dollar exchange rate: The price of silver is closely related to the US dollar exchange rate. A strong dollar represents a good domestic economic situation, and the function of silver as a means of value storage has been weakened. When the exchange rate of the US dollar fell, the value-preserving function of silver was reflected again.
Oil price: When the oil price in the international market keeps rising, the price of silver will also keep rising. The reason is that the increase of oil revenue in oil-producing countries will affect the market demand for silver.
Financial crisis: when the financial system is unstable, it will cause a worldwide financial crisis, and silver will play the role of a fund refuge, and the price of silver will rise.
There are more and more factors affecting the change of gold price. Specifically, it can be divided into the following aspects:
I. Supply factors
1. Gold reserves on the earth; 2. Annual supply and demand. New gold mining costs; 4. The political, military and economic changes in gold producing countries, and any political and military turmoil in these countries will undoubtedly directly affect the gold production of this country, thus affecting the world gold supply; 5. The central bank sells gold.
Second, the demand factor
1. Changes in the actual demand for gold (jewelry industry, industry, etc. ) .2. In order to maintain the value, the gold reserve has always been regarded by the central bank as an important means to prevent domestic inflation and regulate the market. For ordinary investors, investing in gold is mainly for the purpose of preserving value under inflation. During the economic downturn, because gold is safer than monetary assets, the demand for gold increases and the price of gold rises. 3. Speculative demand.
Third, other factors.
The impact of the length of the dollar exchange rate. Looking back on the history of the past 20 years, if the dollar strengthens against other western currencies, the price of gold in the international market will fall. If the dollar depreciates slightly, the price of gold will gradually pick up. 2. The monetary policies of various countries are closely related to the international gold price. When a country adopts a loose monetary policy, due to the reduction of interest rates, the country's money supply increases, which increases the possibility of inflation and will lead to an increase in the price of gold. 3. The influence of inflation on gold price should be analyzed from two aspects: long-term and short-term, and the short-term should be decided according to the degree of inflation. In the long run, if the annual inflation rate changes within the normal range, it will have little impact on the fluctuation of gold prices; Only in a short period of time, the price rises sharply, causing people to panic, and the purchasing power of monetary units declines, will the price of gold rise sharply. 4. The influence of international trade, finance and foreign debt deficit on gold price. 5. International political turmoil, wars, terrorist incidents, etc. 6. The influence of the stock market on the price of gold. Generally speaking, the stock market falls and the price of gold rises. 7. Oil price, gold itself, as a hedge against inflation, is inseparable from inflation. Rising oil prices mean that inflation will follow, and so will the price of gold.