For ages silver has lived with the nomenclature of ‘gold's little brother' and ‘poor man's gold'. Silver is one of the precious metals known to mankind. There used to be a general conception in the earlier times. Gold was considered the money of royals, silver was for gentlemen, barter for peasants and in the end debt was for the slaves. The things have not changed much since then. History stands witness to the fact that gold and silver have extensively been used for money in the form of coins. Earlier the commodities were brought and sold by trading in silver or gold.
Silver price has always been a step behind the gold price. The reason that stands strong for this is that the availability of silver is ten to twenty times more compared to gold. The abundant availability plays a decisive role in determining the price of silver.
Most of the amateur traders in silver market tend to fail to comprehend its magical super-spikes are moderately rare. In past years one may have only seen occasional silver up legs. This time to time wild metal has used up the greater part of its bull snoozing in long and dull consolidations. But there are times when some big-enough gold rallies awakens silver. That is the time when the traders flood into the silver miniature market so quickly that the silver price is affected. As a result the silver price rises. This is how the market and the silver price become related and affected.
There is another interesting fact about the silver and gold value quotient. Some academics and economists have been quoted saying that silver is less expensive compared to gold, as silver is bulkier than an equivalent amount of gold. Further, more are the costs to handle and ship, making silver less valuable than gold.
Silver has diverse attributes that increase its uses and elevate the silver prices. Versatility, inelasticity and duality are a few of them. Duality refers to its industrial and economic uses at the same time. All of these factors have an impact on the silver price. Silver is used for making currency coins, for decoration purposes and most of all for jewelry. These all utilize silver metal extensively.
Apart from all the discussions and facts that have been listed here, there is another important statement. According to the trade analysts the absolute silver price is totally immaterial when viewed from business perspective.
