While the demand for silver has been fairly constant, it’s price can vary quite a bit. These variances are linked to a number of factors. The following guide can help silver buyers know when to invest in this precious metal. 

What Are Some of the Factors That Influence Silver Prices?

1. Supply

While the demand for silver is relatively stable, the supply is not. Mines in Mexico are responsible for a significant portion of silver on the market today. If an issue arises with these mines, such as a natural disaster or workers’ strike, production will be impacted. And when production is impacted, costs are likely to increase as supply decreases. 

2. Coin Grade

Silver coin grade refers to a coin’s condition. Coin grade is determined by the Sheldon Coin Grading Scale, which ranges from 1 to 70. 1 is the lowest possible grade and 70 is the highest. Silver coins graded from 60 through 70 are considered mint condition, so the higher the grade, the more expensive the coin will be. 

3. Industrial Use

Silver is not only used to produce coins and jewelry, but it also has several industrial uses, like parts of phones and solar panels. In fact, these new applications for silver are causing demand for the precious metal to rise. As solar power becomes more and more prevalent, it’s projected that silver prices will continue to increase when faced with this increased demand. 

Whether you’re a silver buyer or seller, having the right information is crucial. Ashmore Rare Coins and Metals of Greensboro, NC, is a trusted source of information regarding precious metals and gems. They will help you determine the value of a piece you already own or offer advice on buying ones that offer the highest value. Silver buyers are encouraged to stop by their shop or call (336) 617-7537 for more information. You can also visit them online for more information on precious metals.