The silver market is an important sector of the global economy that plays a significant role in a variety of industries, ranging from electronics to jewellery. In comparison to the full-year price average for 2022, silver in 2023 is more than 8% higher.

What Was Happening in the Silver Market During February 2023?

In February 2023, the silver market was in a state of flux. At the beginning of the month, silver likewise had a steady increase, reaching a new high for 2023 of $24.43 before falling once more to a low for the month of February of $22.38. The market’s anticipation of more gradual US interest rate increases and China’s relaxation of its current zero-Covid policy are the main causes of this.

Understanding How International Economic Fluctuations Impacted the Silver Market in February 2023

The Fed and other central banks have raised interest rates in response to rising inflation, which has hurt gold and silver prices. The Fed increased rates by merely 25 basis points in February 2023.

Exploring Major Influencers on the Silver Market During February 2023

•   Industrial Demand: Silver is a critical component in the manufacturing of electronics, solar panels, and other industrial applications. Changes in demand for these products can have a direct impact on the demand for silver, and thus its price.
•   Investment Demand: Like gold, silver is often seen as a safe-haven asset that can help investors protect their wealth during times of economic uncertainty. Changes in investor sentiment, geopolitical tensions, and other factors can lead to changes in demand for silver as an investment.
•   Currency Markets: The value of the US dollar and other major currencies can have an inverse relationship with the price of silver. When the value of the US dollar rises, it can make silver more expensive for investors holding other currencies. Conversely, when the value of the US dollar falls, it can make silver more attractive to investors.

·   Supply and Demand: Changes in the supply of silver, whether from mining output or recycling, can affect the price of silver. Similarly, changes in demand from industries or investors can also impact the price of silver.