Silver is expensive primarily due to high demand driven by its unique properties and increasing use in industrial applications and technological advancements.
Here's a breakdown of the factors contributing to silver's price:
- Industrial Demand: Silver is a crucial component in numerous industries.
- Electronics: Silver is used in electrical contacts, conductors, and switches due to its high conductivity.
- Solar Panels: Silver paste is used in photovoltaic cells to conduct electricity.
- Water Purification: Silver ions act as a disinfectant and are used in water filtration systems.
- Investment Demand: Silver is seen as a store of value and a hedge against inflation, leading to increased investment demand.
- Supply Constraints: While silver is mined, the supply is sometimes constrained by geopolitical factors and mining costs.
- Jewelry and Silverware: Traditional uses of silver in jewelry and silverware also contribute to demand.
In essence, the increasing technological use cases coupled with its traditional roles as an investment and material for jewelry and silverware are key drivers behind silver's higher price point.
