About Silver
Silver sits between a precious and an industrial metal. More than half of demand comes from industry, including solar panels, electronics and brazing alloys, while coins, bars and ETFs bring investment flows. That mix makes silver more volatile than gold.
What moves the silver price
- The same macro drivers as gold: real yields, the US dollar and safe-haven demand.
- Industrial activity, especially solar photovoltaic installations and electronics output.
- Mine supply, which is largely a by-product of lead, zinc, copper and gold mining.
- The gold/silver ratio, which traders watch for relative-value signals.
Two markets in one metal
Silver is pulled in two directions. As a monetary metal it reacts to the same forces as gold: real interest rates, the dollar and appetite for safety. As an industrial input it depends on factory output, especially electronics and solar panels, where silver paste conducts electricity in photovoltaic cells. When both forces line up, silver can outrun gold by a wide margin. When they conflict, for example during a recession scare that lifts gold but hurts industry, silver often lags.
Supply is unusual too. Most silver is mined as a by-product of lead, zinc, copper and gold operations, so higher silver prices do not quickly bring new supply. A mine's output depends more on the economics of its main metal than on the silver price itself.
Why silver is more volatile
The silver market is far smaller than the gold market in dollar terms, so the same amount of investment money moves the price further. Retail coin and bar buying can also come in bursts, and futures positioning can become one-sided quickly. As a rule of thumb, daily percentage moves in silver are often around one and a half to two times those in gold. Position sizes should reflect that: a stop distance that suits gold may be too tight for silver. Our risk management guide shows how to size positions from stop distance.
Seasonality
Silver shares gold's festival-driven physical demand in India, where silver jewellery, utensils and coins are popular gifts in the autumn festival season. Industrial demand is steadier but follows manufacturing cycles, and Chinese factory activity tends to dip around Lunar New Year. Solar installation demand has become a large, policy-driven swing factor: changes in subsidies or tariffs can matter more than any calendar effect.
Silver and the gold/silver ratio
Many traders judge whether silver is cheap or expensive relative to gold by dividing the gold price by the silver price. A high reading means silver is cheap relative to gold by historical standards; a low reading means the opposite. The ratio is explained in detail, with worked examples and its limitations, in our gold-to-silver ratio guide.
Contract specifications
| Benchmark future | COMEX Silver (SI), CME Group |
|---|---|
| Contract size | 5,000 troy ounces |
| Price quote | US dollars and cents per troy ounce |
| Minimum tick | $0.005 per ounce = $25 per contract |
| Most active months | March, May, July, September, December |
| Settlement | Physical delivery of 5,000 oz in approved bars |
| Smaller contracts | Micro Silver (SIL) 1,000 oz |
| Spot reference | XAG/USD and the daily LBMA Silver Price (12:00 London) |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
Spot silver trades about 24 hours a day, five days a week. CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
Contract basics
COMEX Silver (SI) covers 5,000 troy ounces, with a minimum tick of $0.005 per ounce ($25 per contract). Smaller 1,000-ounce contracts are also listed.
Quote unit
USD per troy ounce. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Silver FAQ
What moves the price of silver?
The same macro drivers as gold: real yields, the US dollar and safe-haven demand. Industrial activity, especially solar photovoltaic installations and electronics output. Mine supply, which is largely a by-product of lead, zinc, copper and gold mining. The gold/silver ratio, which traders watch for relative-value signals.
When does silver trade?
Spot silver trades about 24 hours a day, five days a week. CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
What is the standard silver contract?
COMEX Silver (SI) covers 5,000 troy ounces, with a minimum tick of $0.005 per ounce ($25 per contract). Smaller 1,000-ounce contracts are also listed.
What is the gold/silver ratio?
It is the number of ounces of silver needed to buy one ounce of gold, calculated by dividing the gold price by the silver price. Traders use it as a rough relative-value gauge.
Why does silver fall harder than gold in sell-offs?
Silver is a smaller, less liquid market with heavy industrial exposure, so economic worries and forced selling hit it harder.
Is silver used up or recycled?
Much industrial silver is used in tiny amounts that are hard to recover, so a meaningful share of annual use is effectively consumed. Jewellery and silverware are recycled more readily.
When is silver most liquid?
During the London and New York overlap and around major US economic releases, the same windows that matter for gold.