Factors affecting silver prices:

1. Natural factors

(1) On-ground spot silver stock There are currently approximately 137,400 tons of spot silver in the world. The stock of spot silver on the ground is still growing at about 2% every year.

(2) Annual supply and demand The annual supply and demand of spot silver is approximately 4,200 tons, and the new output of spot silver every year accounts for 62% of the annual supply.

(3) New gold mine mining costs The average total cost of spot silver mining is approximately slightly less than US$260/ounce. Due to advances in mining technology, the cost of spot silver development has continued to fall over the past 20 years.

(4) Political, military and economic changes in spot silver producing countries. Any political or military turmoil in these countries will undoubtedly directly affect the amount of spot silver produced in that country, and thus affect the world's spot silver supply. .

(5) The central bank’s spot silver selling. The central bank is the largest holder of spot silver in the world.

2. Demand factors: The demand for spot silver is related to the use of spot silver. direct relationship.

(1) Changes in actual demand for spot silver (jewellery industry, industry, etc.).

(2) The need for value preservation. Spot silver reserves have always been used by the central bank as an important means to prevent domestic inflation and regulate the market.

(3) Speculative demand. According to the international and domestic situation, speculators take advantage of the gold price fluctuations in the spot silver market, coupled with the trading system of the spot silver futures market, to "short sell" or "replenish" spot silver in large quantities, artificially creating the illusion of demand for spot silver.