Silver Price Per Gram 5-Year History
Silver has been an important part of society since ancient times and continues to be used today in a number of applications.
Over the past five years, silver prices have seen significant fluctuations.
This article will provide an analysis of the silver price per gram over the last five years, from 2016-2020.
It will examine how factors such as economic conditions, supply and demand levels, and geopolitical events can affect the price of silver over time.
Additionally, it will explore how investors can profit from changes in silver prices by taking advantage of these market opportunities.
Overview of the Silver Market
By examining the fluctuations in the precious metal market over the past five-year period, it is possible to gain an understanding of general trends.
Silver prices are highly dependent on global economic changes and geopolitical shifts. When investors become uncertain about future security, they often shift their investments into silver as a hedge against inflation. As a result, when markets experience volatility or macroeconomic instability, silver prices tend to increase significantly.
On the other hand, when there is confidence in the economy and greater demand for goods and services, silver prices tend to decrease due to decreased investor interest. The metal’s price will also be impacted by supply and demand dynamics within the industry, as well as any disruption in production from various mines around the world.
In addition to this, technological advancements such as 3D printing can affect global demand for silver, which can lead to significant price changes over time.
Analysis of the Silver Price Per Gram in 2016
Examining the data from 2016, a graph can be provided to illustrate the changes in the cost associated with this commodity.
The graph depicts that silver prices per gram steadily increased at a moderate rate throughout the first quarter of 2016, then spiked sharply during April and maintained a high point until June.
Following this peak, silver prices began to decrease slowly before dropping substantially for two months and followed by an increase over the last month of 2016.
It is interesting to note that while this year’s silver price per gram was higher than 2015, it did not reach as high as its 2014 peak.
This suggests that while silver still remains a valuable asset for investors, there has been some stagnation in its value overall since 2014.
Furthermore, it is worth noting that although there were some volatile moments within 2016 when it comes to silver prices per gram, overall there was not much significant change when compared to previous years.
Analysis of the Silver Price Per Gram in 2017
Analyzing data from 2017, it can be observed that the cost of this commodity experienced a significant increase in comparison to the previous year, presenting an attractive investment opportunity for those interested.
Throughout the year, silver prices experienced both increases and decreases due to market fluctuations. However, at the end of 2017, silver prices were higher than they had been at the beginning of the year with a high point of $17.14 per gram reached on December 8th.
Notable spikes and dips throughout 2017 included:
- A sharp increase in price on February 28th when silver prices rose to $16.91 per gram
- A steady decline in price between March 3rd and April 7th which saw prices dropping by over 20% from $16.86 to $13.22 per gram
- An impressive surge during late August when silver climbed from a low point of $14.19 per gram on August 22nd to its highest recorded value for 2017 ($17.14) just 16 days later
- A steep drop towards the end of December as silver ended 2017 at $15.99 per gram – still higher than its starting value for the year but significantly lower than its peak performance in late August.
Analysis of the Silver Price Per Gram in 2018
Through the course of 2018, the cost of this precious metal underwent considerable changes in relation to its previous year’s performance.
During the first quarter of 2018, silver prices increased steadily as investors began to shift from traditional investments into commodities as a hedge against inflation. This trend was further exacerbated by increased industrial demand for silver due to its use in electronics and solar panels.
However, prices began to decline towards the end of Q2 due to a combination of strong US Dollar, rising interest rates and increasing supplies from major producers. This resulted in an overall 8% decrease in price by the end of June compared with January.
The second half of 2018 saw a reversal of fortunes for silver prices as demand continued to remain strong while supplies tightened due to lower production figures and falling inventories at Comex warehouses. This led to a steady increase in price across all months with August recording the highest gain since 2014 at 10%.
By December, prices had climbed back up by 6% compared with January which meant that overall for 2018, there was only a 2% drop in silver prices per gram when compared with 2017 levels.
Analysis of the Silver Price Per Gram in 2019 and 2020
In 2019 and 2020, the silver market saw a continuation of its fluctuations as investors sought to balance competing forces of supply and demand.
The average price per gram across these two years was generally higher than in 2018, reaching a peak of $0.79 per gram in August 2019 before dropping to $0.41 per gram by December 2020.
This peak is attributed to geopolitical tensions that drove investment into safe-haven assets such as precious metals during the period, while the drop to low values can be traced to macroeconomic factors such as decreased industrial demand for silver due to COVID-19 related lockdowns around the world.
Overall, silver prices remained volatile over this two year period, with mixed effects on investors depending on when they bought or sold their holdings.
While some experienced gains due to the peaks in prices seen throughout 2019 and 2020, others lost money due to dip in prices toward the end of 2020.
As such, it is important for potential investors to understand both current economic conditions and historical trends when making decisions about investing in silver or any other asset class.
Frequently Asked Questions
What is the best way to invest in silver?
Investing in silver is a popular choice among those looking to diversify their portfolios. Silver has the potential to provide stability and returns, as well as hedge against inflation.
When investing in silver, it is important to consider not just the current price but also the long-term trends of the metal’s performance. This includes examining historical prices, production costs, supply and demand forces, economic indicators such as GDP growth and global market trends, as well as geopolitical factors that could impact future prices.
Additionally, investors should weigh their risk tolerance and determine which type of investment strategy best suits their needs.
What are the long-term effects of rising silver prices?
The long-term effects of rising silver prices are far-reaching.
Silver is a precious metal with many industrial, commercial and investment uses, so its price can have an effect on the global economy.
Higher prices can create greater demand for silver in various industries, resulting in increased production and investment opportunities.
Additionally, higher prices can lead to inflationary pressures due to increased costs for goods produced using silver components.
This could then lead to higher interest rates as central banks attempt to control inflation levels.
In addition, it could also lead to currency devaluation as governments try to remain competitive with other countries in terms of export pricing.
What are the current trends in silver prices?
Silver prices have been on the rise over the past several months. Despite some short-term volatility, silver prices remain relatively high compared to recent historical levels.
This is due in part to a strong demand from investors and consumers for safe-haven assets like precious metals during times of global economic uncertainty. Additionally, central banks have increased their purchases of gold and silver as a way to diversify their reserves.
These factors are expected to continue to drive up silver prices in the near future.
How do external factors affect the silver market?
External factors have a significant impact on the silver market. Demand and supply of silver are both influenced by external forces, including geopolitical events, economic conditions, currency values, and other commodities markets.
For example, an increase in the demand for gold may cause investors to shift their focus away from silver investments, leading to decreased demand and consequently lower prices. Similarly, events such as natural disasters or government policy changes can also affect the global availability of silver supplies and thus influence its price.
Is it better to buy silver in bulk or in smaller quantities?
The purchase of silver in bulk or smaller quantities is a decision that should be taken into careful consideration. Imagery of silver bars, coins, and jewelry can conjure up visions of wealth and prosperity.
While it may seem more economical to purchase larger quantities of the precious metal, one must consider the current market value and the potential for price fluctuations over time. Buying in bulk could mean an initial risk if prices drop before the entire amount has been sold off, while buying smaller amounts could lead to higher turnover but potentially less long-term gain.
Ultimately, weighing the pros and cons is essential for determining which approach would make the most sense financially.
Conclusion
The silver market has been on a roller coaster ride over the past five years. After reaching its peak in 2016, the price per gram of silver saw a steady decline in the following years – 2017, 2018 and 2019.
However, 2020 proved to be an exception as prices skyrocketed due to strong demand from investors responding to economic uncertainty. Although this sudden surge was unexpected for many, it serves as a reminder that anything can happen in the volatile silver market.
All it takes is one single event to cause the price of silver per gram to fluctuate drastically, no matter how unlikely it may seem.
