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Gold places first, silver comes second… This is how these precious metals are typically perceived in the market when it comes to both value and demand.
However, silver has recently begun to dominate the headlines due to a significant increase in demand and in July 2020 it reached its highest price in recent years.
The price of silver has risen 66 per cent since March 2020 when its lowest point was recorded, as reported by the Wall Street Journal. Now hitting $19.50 a troy ounce in New York, experts are certain that the market could erupt at any time. So what is the reason for this surge in demand?
Silver is typically seen as a good investment, particularly during an economic downturn. This is a likely motivating factor behind the historical level of silver purchases made via exchange-traded funds (ETFs) over the past couple of months.
But industry also has a role to play in the silver price rise. With lockdown measures being relaxed, we are seeing factories start to reopen and production is returning to normal levels – albeit slowly.
With more production taking place, comes more demand for materials. Out of all of the precious metals, silver is sought after as an industrial metal because it is reflective and is used to create many technology devices.
Taking these factors into consideration, we would expect the rise in demand for silver to be directly caused by both the increase in factory productivity and the economic downturn.
It is difficult to predict when this increased demand for silver will end and as always we won’t know we’ve reached the peak of the price point until we’re on the way down again.
With this in mind, there’s no time like the present to look at your portfolio. If in doing so you consider selling some silver, it is important to know which silver items are worth the time and effort of selling.
Gold jewellery tends to offer a decent cash sum upon sale even in smaller volumes. However, silver is a different matter. While its value might be on the rise, it is still notably lower than that of gold so you really won’t see much of a return unless you’re looking at selling significant quantities of the precious metal.
That does not mean all hope is lost when it comes to getting a good price for your silver portfolio. Owning a collection of silver coins and silver bullion bars poses an opportunity for selling at a competitive price as these items contain more pure metal and are of a substantial weight.
When it comes to researching for new ways to sell silver, you should not dismiss scrap gold companies.
Scrap Gold UK was founded in the world famous Birmingham Jewellery Quarter and offers competitive rates for precious metals, including silver and gold. Our online Scrap Silver Calculator offers a free valuation in two quick and easy steps; all you need to provide is the weight in grams and purity of the metal.
For more information about capitalising on your scrap silver, feel free to call our Customer Service Team on 01902 828 400 - customer satisfaction is our number one priority.