Silver

Silver, similar to other precious metals, can be used as an investment. For centuries, silver has been regarded as a form of money and store of value.

Silver used as coins is probably the oldest form of mass usage of this precious metal, having first been invented by the Ancient Greeks in around 650BC. Their silver drachmas were popular trade coins.

Many factors determine the value of a silver coin, such as its rarity, demand, condition and the number originally minted. Other than collector's silver coins, silver bullion coins are popular among people who desire a "hedge" against currency inflation or store of value.

The silver price is basically the market value of silver.

The Silver price is influenced by several factors including industrial demand and mines supply, investment demand and like gold, geopolitical risks as well as financial instability in the market.

The majority of silver used in industry ie two thirds of annual production, is used in non recoverable amounts, making what is left, scarcer and more desirable.

It is interesting to note that investors have been net buyers of silver since 2005 which was not long after the US Government announced that it longer long held any of the 2 billion ounces of silver reserves it had built up over the late 19th and early 20th century. The US was the only large holder of silver and once their 100year stockpile was exhausted, it made investors more comfortable that large quantities of silver could not be dumped onto the market by a cash strapped US Government.