Price of silver


Silver price development

People paid mostly with silver in the past, and although it may seem nonsense today, sometimes people valued it more than gold - for example in ancient Egypt…However, silver was recognized as currency at the end of the 19th century and this had an adverse effect on its value. Silver only started to prosper thanks to modern technologies, when its application expanded to industrial use. Eight times less silver is available than gold today, and the industry consumes more than miners can provide. This will, of course, be reflected in the long-term development of silver prices which must naturally rise and smart investors have not missed this information.

Silver is a commodity that is affected mainly by speculation and the development of supply and demand. Its prices react to monetary developments, they increase during periods of inflation and, on the contrary, they fall during a period of slowing down the growth rate of the price level. The development of the price of silver has been rapid over the last 100 years - it has increased rapidly more than once (often even faster than in the case of gold), only to steeply fall. There were two investment bubbles in 1980 and 2011, when the sensitive smaller silver market was affected by speculations.

Development of the price of investment silver in nominal value may not impress, but the real price of silver is influenced by consumer inflation, and the investor's purchasing power is thus preserved. Therefore, more and more investors add silver as reliable protection against inflation and devaluation of funds to their portfolio.

When estimating the development of the price of silver, every investor should keep in mind that due to the high degree of volatility and the burden of value added taxes, silver is an investment for the medium to long-term period.


Graph: current development of the price of silver



Graph: historical development of the price of silver

Czech Mint