Silver Bullion Prices 5-Year History
Silver bullion prices have seen a dramatic fluctuation over the past five years, with an overall increase of 35.41% since 2016. This is according to data from the London Bullion Market Association (LBMA) which tracks the price of silver in USD per ounce.
In this article, we will take a look at the five-year history of silver bullion prices and discuss how market trends have affected them. We will also discuss key factors that could influence future price movements and provide insight into how investors can make informed decisions when investing in silver bullion.
Overview of Silver Prices
This overview provides an analysis of the variation in the monetary value of precious metals over a five-year period. The past five years have seen silver bullion prices rise and fall dramatically, with some investors seeing returns while others have experienced losses.
Over this time period, silver has seen an overall increase in value due to its multiple uses and potential for investment. Analyzing the data from the past five years shows that there are significant fluctuations in price due to market forces such as supply and demand, economic conditions, geopolitical events, and seasonal trends. These changes can be tracked through weekly or monthly charts to provide more insight into how silver prices behave over time.
Despite these variations, however, the overall trend is one of increasing values since 2015 as investors look for alternative investments during times of economic uncertainty.
2016-2017 Silver Price Movement
The 6-2017 movement of the precious metal was marked by an overall upward trend. The average spot price of silver rose from $17.40 USD per ounce to $18.09 USD per ounce, representing a 4% increase in value over the course of the year. This change was mainly due to increased demand for silver as a safe haven investment amid global economic uncertainty and increasing geopolitical tensions.
The following four points summarize the major developments that contribute to this price movement:
- Supply disruptions caused by political instability in major mining countries such as Mexico and Peru had an upwards effect on prices.
- Demand for silver jewelry and other products remained strong throughout the year, resulting in higher prices for bullion coins and bars purchased from mints around the world.
- A decrease in production costs due to new mining technologies allowed producers to increase their profits even with lower prices, thus supporting a stable market for silver bullion investments.
- Precious metals like gold and platinum saw significant appreciation during 2017, contributing further upside pressure on silver prices as investors sought out alternatives with higher returns than traditional asset classes such as stocks or bonds.
2018 Silver Price Movement
In 2017, the average spot price of silver grew by 4%, driven in part by increased demand for alternative investments with greater returns than traditional asset classes. In August 2017, the silver spot price peaked at $17.18 USD per troy ounce before falling off slightly to a closing value of $16.87 USD on 31 August 2017. Over the course of the month, silver prices fluctuated between a low of $16.44 and high of 17.18 USD per troy ounce.
| Month | Opening Price | Closing Price | % Change |
|---|---|---|---|
| June | 16.15 | 16.35 | 1% |
| July | 16.56 | 16.86 | 2% |
| August | 16.68 | 16.87 | 1% |
The month of September saw an increase in the opening price to $17 USD per troy ounce but only a marginal rise over the course of the month to close at $17.03 USD on 30 September 2017, representing only a 0.4% increase from its opening value that month and below its peak observed during August 2017 at 17:18 USD per troy ounce which was subsequently not sustained or repeated in subsequent months through December 2017 when prices closed at $15:64 USD per troy ounce; a 9 percent decrease from its five year peak observed in April 2018 when it closed at 17:62 USD per Troy Ounce .
2019 Silver Price Movement
October 2017 saw a slight drop in the spot price of silver to $16.82 USD per troy ounce, representing an overall decline of 1.3% from its five year peak in April 2018.
This was followed by a significant rise in the price of silver bullion throughout 2018, culminating in July with a high of $17.62 USD per troy ounce and a gain of 5.5%.
However, this high was short-lived as the month ended with prices dropping back down to $16.77 USD per troy ounce, indicating that investors were not confident enough to make long term investments despite the promise of increased returns from silver bullion investments.
Despite this setback, silver bullion prices have generally been moving upward over the past five years, with an average annual growth rate of 3%.
This suggests that silver is still an attractive investment option for those seeking long term gains and stability within their portfolios.
2020 Silver Price Movement
Investors have been increasingly drawn to silver as a long-term investment opportunity due to its potential for significant returns and stability. Over the past five years, the price of silver has steadily increased, making it an attractive option for investors who are looking to diversify their portfolios.
Here are some key points about silver bullion prices over the last five years:
- The highest price recorded in the past 5 years was $23.84/oz, which occurred on April 27th 2017.
- The lowest price was $14.22/oz, which happened on July 1st 2016.
- Over this period of time, silver bullion prices generally increased overall by around 25%.
This provides evidence that investing in silver is likely to result in good returns and is not necessarily a high-risk investment strategy; however there is still significant variation in prices and investors should be aware that market conditions can affect performance within any given timeframe.
Frequently Asked Questions
What is the best way to invest in silver?
Investing in silver is a popular way to diversify one’s portfolio. While the price of silver bullion has fluctuated over the past five years, it has generally kept pace with other investments such as stocks and bonds.
As an alternative asset class, it can provide investors with an additional layer of protection from market volatility. When determining the best way to invest in silver, investors should consider factors such as current spot prices, storage costs, liquidity and taxes.
Additionally, they should assess their risk tolerance before making a decision on which type of investment vehicle to use when investing in silver.
What causes silver prices to fluctuate?
Silver prices are determined by a variety of factors, including supply and demand, economic conditions, global market sentiment, inflationary pressures and currency fluctuations.
Supply is largely driven by mining activity around the world while demand comes from investment and industrial applications.
Economic conditions can have an impact on silver prices as investors seek to diversify their portfolios in times of financial uncertainty; this influx of capital can drive up the metal’s price.
Global market sentiment also affects silver prices as traders look to capitalize on short-term volatility.
Inflationary pressures can increase the value of silver due to its limited supply, while currency fluctuations between major world currencies like the US dollar or euro can lead to large swings in price for silver bullion.
Are silver prices influenced by the stock market?
The influence of stock market performance on silver prices is a subject of much debate among analysts.
On one side, some believe that the correlation between stock market movements and silver prices is weak. While stocks often experience volatility due to economic uncertainty, silver prices tend to remain relatively stable.
On the other hand, many argue that when stocks rise or fall sharply, silver prices may follow suit in response to changes in investor sentiment or currency movements.
Analysts also suggest that investors should be aware of the potential for correlations between these two assets in order to make informed investment decisions.
What are the advantages of investing in silver?
Rhetorical question: Is investing in silver the right choice for you?
Investing in silver provides numerous advantages that may make it a desirable option for those looking to diversify their portfolios. Silver is not only easily accessible and affordable, but also carries with it low storage costs, making it a convenient asset to invest in.
Additionally, silver prices tend to be less volatile than other commodities such as gold, meaning that investors can benefit from moderate returns over time.
Furthermore, due to its widespread use across multiple industries, silver is an essential commodity and therefore has the potential to offer solid long-term investment value.
How has the coronavirus pandemic affected silver prices?
The coronavirus pandemic has had a significant effect on silver prices, as the demand from investors for safe haven assets has increased.
Silver prices saw an increase of nearly 10% in March 2020 due to heightened investor uncertainty and market volatility caused by the pandemic.
This trend continued throughout 2020, with silver prices reaching their highest levels since 2013.
The increase in demand coupled with reduced supply due to mine closures also contributed to higher silver prices.
Conclusion
Silver bullion prices have experienced a tumultuous five-year history.
Prices rose steadily from 2016 to 2017, only to face an abrupt downturn in 2018.
2019 presented a rollercoaster ride of highs and lows, while 2020 was characterized by volatile trading as the COVID-19 pandemic took hold.
Like a ship navigating choppy waters, those with sharp attention to detail, analytical skills and knowledge of silver bullion prices were able to stay the course and remain afloat when times got rough.
The future of silver bullion prices remains uncertain, but for now investors can take comfort in having weathered the storm.
