Mainly because of the existing offer. There is still a significant amount of silver to be extracted and also of scrap metal. On the other hand, demand is not as high as it used to be, since the end of the bimetallic standard around the world. He fell in love with buying gold and silver bullion after learning how the global monetary system works and has been an avid believer and preacher of hard assets ever since.
This sudden surge of gold in the country caused them to switch from the German thaler (silver) to the German mark (gold). In addition to investor confidence, the trend in the price of silver has been supported by its increasing use in industrial environments, which account for approximately half of the annual demand for the metal. Today's bullion traders and investors use the fluctuating gold-silver ratio to analyze and choose which precious metal could outperform the other. Seeing that the economy could not sustain a currency backed by the two metals, the United States Congress passed the Coin Minting Act of 1873, which would temporarily remove the country from the silver standard and keep gold as the main metal of the U.S.
dollar. Despite the saving of metals, which has already reduced the silver content in photovoltaic cells by 80% over the past decade, demand is expected to grow over the next five years. In fact, this had a positive impact on the cost of silver because investors moved their money from savings accounts to other assets. It can be assumed that buying silver, even in small quantities, could constitute a sensible entry into the bullion market and a diversification of portfolios to avoid possible debt crises.
Based on the outlook for the ratio, investors may be more inclined to buy silver than gold, or vice versa. This represents a gradual step forward by the government towards economic reopening, which benefits the price of growth-sensitive and industry-linked commodities, such as silver. On the other hand, since the end of the silver standard, demand for this precious metal has not been as high as it used to be. Arguably, the first global factor that contributed greatly to the collapse of the silver market was the Franco-Prussian war of 1870-1871.