Investing in live silver prices

Our advice for trading Silver

Tip number 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.

Tip number 2

Gold prices are positively correlated with silver prices.

Tip number 3

The global economic health that determines demand

Tip number 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.

Trade real-time Silver!
76.4% of retail investor accounts lose money when trading CFDs with this provider.
Trading raw materials and precious metals like silver is a great idea. But before embarking on this speculation, it's important to be able to carry out precise analyses of the live price of silver in order to develop a reliable trading strategy and as precise as possible taking into account the elements and external influencing factors.  

 

General presentation of Silver:

As you probably already know, silver is a precious metal used in jewellery, but also used in the manufacture of many other derivative products. That's why silver is very widely used by the international industry.  Silver is largely used for the production of laptops, digital cameras along with portable music players and tablets (44% of total annual production). The share of silver consumption in the jewellery sector is only 30% of overall production.

Silver has the distinction of closely following the price of another precious metal, gold. Therefore, relying on a related analysis of these two markets to predict the evolution of silver prices is possible.

The choice of chart is of course essential when trying to carry out an analysis of the live silver price. The chosen chart must give updated information in real time. Incidentally, it's best to follow prices at times when the market is most volatile. No need to try following the price developments during closing hours.

As for the type of chart or display to use, it's best to use short-term graphics which will tell you all the subtleties of the positions of other investors, unless of course you plan to trade the Silver as a long-term asset.

The analysis of historical charts is also interesting because it shows several major upward and downward phases of the price of silver over the past 10 years. The last strong uptrend was spotted in 2011, roughly at the same time as that of gold, and also ended in a bearish retracement. This downward movement is however stabilizing, giving way to a neutral trend.

However, it's more than likely that we notice an upward recovery in silver prices in the coming years. Therefore, it would be smart to take a position on this asset now.

 

Factors influencing its evolution

Like the price of gold, the price of silver is quoted on the NYMEX or New-York Mercantile Exchange where it's quoted constantly. The development of the price of silver essentially depends on the supply and demand of investors in this market.

Silver is quoted in US dollars. As a result, fluctuations of this currency against other currencies can also have an impact on the price of silver. But the price of silver is also directly affected by global economic growth. Silver is a raw material widely used by industry. So when growth is strong, the demand for silver increases.

Like gold, silver can also serve as a safe haven when financial markets are down.

 

Why invest?

The price of silver has real benefits for traders, firstly due to the significant fluctuations that it presents on a daily basis and which represent as many opportunities for short-term gain, especially if you use leverage. This leverage of up to 1: 400 saves you from having to have significant investment equity to carry out profitable operations.

And secondly, silver just like gold, has a safe haven status which allows reliable coverage of your positions on other markets, especially in the event of inflation or a drop in the world economy.

 

Trade silver with CFDs:

Although it is possible to trade silver on Forex, it's also found in the form of futures and options on several international markets such as the NYMEX or New York Mercantile Exchange, as well as the TCE or Tokyo Commodity Exchange. With regard to the French silver exchange market, there are traditional trading possibilities, as well as warrants, certificates and rolling turbos on the Euronext market.

Thanks to CFDs, registering on a trading platform, will allow you to speculate on different types of assets such as raw materials, stocks and stock indexes, as if you were speculating on a currency cross.

In other words, this amounts to taking a position at a certain price level and considering a significant drop or increase in this price in order to gain the difference between the time of your CFD subscription and its closing.

 

Here's a simple example:

You anticipate an increase in the price of silver and decide to invest € 100 with leverage of 1: 100 on a silver CFD. At the time of your position, the ounce of silver is worth 31.00 dollars. When the price of silver reaches 32.00 dollars, you close your position.

You earn the difference between the purchase price and the sale price of your operation.

Trade in live silver prices:

You can now trade on the price of Silver directly on commodity markets thanks to online brokers and their features. Create your account ASAP.

Trade real-time Silver!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.