It is understood that silver has excellent physical and chemical characteristics such as room temperature electrical conductivity and thermal conductivity. It is often used as a catalyst, conductive contact material, and antimicrobial agent. It is widely used in industrial fields such as electronics, renewable energy, and medical and health care. According to data from the World Silver Association, in 2024, industry, jewelry and investment account for 58%, 18%, and 16%, respectively, of which the photovoltaic field belonging to the industry accounts for 17%.

The rise in silver prices this time is also closely related to the outbreak of its financial attributes. The uncertainty of global trade policy and geopolitical tensions have pushed up risk aversion since the beginning of this year, driving the sharp strengthening of gold prices, thus driving a steady rise in silver prices. In addition, policies such as the Federal Reserve’s interest rate cuts are also beneficial to the financial attributes of silver.

From the perspective of asset allocation, when gold prices rise, because of the close gold-black linkage of gold and silver, people may also allocate more funds to silver, which will actually lead to an increase in silver prices.

In addition, the recovery and decline of the gold-silver ratio is also attracting funds to shift from gold to silver. The gold-silver ratio is the ratio of gold price to silver price. Industry insiders pointed out that due to the strong rise in gold prices in the early stage, the gold-silver price ratio once exceeded the 100 mark, setting a historical extreme value. This shows that the price of silver is significantly undervalued, attracting continuous inflow of funds. In early June this year, benefiting from the recovery demand of gold-silver ratio, silver launched a strong round of rebounds.