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Analysing the silver price before investing in trading

Trade silver online!

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Nowadays, the commodity market is of increasing interest to investors, and this applies in particular to silver, which is one of the most popular precious metals along with gold. However, in order to be able to invest in silver, it is, of course, essential to be able to analyse its price live. This is why we have included in this article some information specific to the silver market and some elements that you should know before carrying out your analysis of this value and trying to detect its future trends.
Investing and trading silver online
  • The price of silver is quoted in dollars on the American NYMEX market.
  • Several factors influence the price of silver on the stock market and need to be analysed 
  • Fundamental and technical analysis are important before investing in silver.
  • It is possible to trade silver prices using derivatives such as CFDs.

Elements to consider before investing in this asset

Analysis N°1

Mining extraction figures are the most important, but they must be compared with the needs of the international industry to deduce the difference between supply and demand.

Analysis N°2

Gold prices are positively correlated with silver prices.

Analysis N°3

The global economic health that determines demand

Analysis N°4

The value of the U.S. Dollar, the currency in which an ounce of silver is quoted and which, in the event of a fall, can favour purchases of this precious metal for investors with another currency and who thus benefit from an advantageous exchange rate.

Analysing the silver price before investing in trading
Trade silver online!
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Trade silver online!

What should I know before investing in silver online?

First of all, let's take a few moments to recall what stock market silver is and what is its history. It is of course a precious metal that is mainly used in industry, in the jewellery, goldsmith's and electronics sectors. Physical silver often takes the form of bars, coins or ingots and its price is quoted on the spot market, allowing investors to speculate on its price variations. In the financial markets, silver is found under the symbol XAG.

But if silver is a stock market asset in the strict sense of the word, it is also an indicator. Indeed, some economists use real-time graphs of stock market silver to predict global economic health. It is also common to think that silver can be used as a basic indicator to anticipate changes in other assets in different financial markets such as other commodities, stocks or currencies.

The history of this precious metal is very old and goes back thousands of years with the first mining exploitation estimated at 3000 BC. Over time and thanks to the strong popularity gained by this precious metal, silver mines multiplied all over the world and silver began to diversify its uses while increasing in value over the years. Thus, demand was so strong at the end of the 19th century that it was necessary to produce 120 million ounces each year to satisfy it.

However, it was not until the 1970s that silver became a stock market asset and therefore its price was quoted in real time. This precious metal entered the market at a price of $1.80 per ounce. The price of silver quickly increased in value and reached the $36 level in the early 1980s. But it quickly fell back to below $10, a level near which it would remain for almost twenty years. During the economic and financial crisis of 2008, the price of silver will however experience another upward phase with a peak at $20, but here again, the trend will quickly give way to a downward correction. Historically, the highest price of silver has been reached at nearly $50 per ounce following a reversal of the upward trend in 2011.

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Historical analysis of silver prices on the stock market

Silver, a precious metal coveted for its beauty, conductivity and industrial properties, has had a chequered history in terms of price. Influenced by various factors such as supply and demand, inflation, geopolitical events and economic changes, its journey has been punctuated by peaks and troughs.

Here are some key milestones in the evolution of the price of silver:

Antiquity and the Middle Ages:

16th and 17th centuries:

19th century:

20th century:

21st century:

Here is a summary table of gold price trends over the last 10 years:

Year Average annual price (USD/ounce) Annual change (%)
2023 24.00 -3.8%
2022 25.10 7.0%
2021 23.50 -1.7%
2020 23.85 48.3%
2019 16.07 -15.7%
2018 19.05 1.4%
2017 18.78 7.3%
2016 17.52 -12.2%
2015 20.00 14.4%
2014 17.45 -6.1%


How do you analyse the price of silver before investing?


The fundamental analysis of live silver prices:

Fundamental analysis is, of course, one of the essential methods of analysis for trading in silver on the stock market and you must be able to detect and interpret external indicators that could raise or lower the price of this precious metal. To help you do this, here are a few examples of elements you can follow.

First of all, of course, the supply and demand for silver will be taken into account. To do this, we will monitor the countries that produce this raw material, such as China, Mexico and Peru. Of course, we will also study the importing countries that consume the most silver, such as the United States, the United Kingdom and India. It is the difference between supply and demand for silver that will have the greatest influence on the price of this metal. As far as demand is concerned, we will not forget to take into account the demand from industry, as silver is still often used today for its electrical conductivity and is therefore used in the composition of many products such as sustainable infrastructures, including photovoltaic panels. Similarly, silver is also highly sought after in the medical sector.

Some global economic data will also be closely monitored. During periods of strong economic growth, the price of silver tends to rise positively, thanks to an increase in the consumption of electronic products, jewellery and vehicles. However, silver prices may rise during periods of recession. This is partly due to the fact that, like gold, silver is considered by many investors to be a safe haven.

We can also look at the correlation between gold and silver. Indeed, the gold/silver ratio, which expresses the amount of silver needed to buy an ounce of gold, is also followed by many investors. Last year (2019), the discount between silver and gold was high at 90 ounces of silver for an ounce of gold. In fundamental analysis, a high ratio generally means that silver might be favoured by investors over precious metals because of its price. A low ratio, on the contrary, tends to make gold more attractive to investors.

Finally, the value of the US dollar can also be used in a fundamental analysis of the price of silver. Remember that silver is quoted in this currency. As a result, when the dollar is weak against other currencies, purchases from countries other than the US become more interesting with an advantageous exchange rate, which tends to increase demand. Conversely, a high dollar will slow down these purchases. Moreover, silver is often used as a hedging instrument in times of high inflation and many investors use it to cover their losses in the currency market.

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Technical analysis of the silver price before investing

Technical analysis is the study of historical movements in the price of an asset, such as silver, to identify trends and potential patterns. This analysis can help investors make decisions about when to buy and sell in trading.

Here are some key factors to consider when performing a technical analysis of the silver price:

1. Trends:

2. Support and resistance:

3. Chartist patterns:

4. Technical indicators:

Frequently Asked Questions

Why analyse the price of silver before investing?

Analysis identifies the factors that influence the price of money, such as supply and demand, inflation, interest rates, geopolitical events and economic changes. This understanding informs investment decisions and helps minimise risk. Silver is a volatile asset whose price can fluctuate rapidly. Analysis enables us to measure the level of risk associated with the investment and to choose appropriate strategies to manage it.

On which stock market is silver listed?

The price of silver, like the price of other precious metals including gold, is quoted live and in real time on the London Bullion Market. This quotation is done electronically and silver is quoted in dollars per ounce. The market price of silver is therefore the dollar price of an ounce of the metal. It is also possible to follow the price of silver from trading platforms.

How to carry out a technical analysis of silver?

Technical analysis of silver can be done from a real-time stock chart. Here it will be necessary to use various technical trend or volatility indicators, including moving averages, MACDs, pivot points and major support and resistance levels.

Is it possible to trade silver online?

Buying silver ingots or silver coins is of course not the only way to speculate on the price of this precious metal. It is possible to use specific contracts called CFDs through an online broker to take a position on the rise or fall in the value of the precious metal.

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