The cost for an ounce of silver right now could change without notice, and there are many market factors and conditions that could cause brief fluctuations or long term trends. These include:
1. Exchange Rate Changes- when the exchange rate changes this is due to the currency getting stronger or weaker. This sends a message to the investment sector that things are getting better or worse, and can cause buying or selling behavior due to the optimism or fears of the individuals who are trading.
2. Budget Considerations- There are many budget considerations that could impact how precious metals perform. The recent fiscal cliff debate and crisis showed that when the future of the country is not certain then many people start to hold on to capital instead of placing it at risk.
3. War- War can have a big influence on the entire global economy and almost any investment vehicle. When war starts the amount of this bullion required for munitions will usually cause a price increase. In addition the intrinsic worth of silver does not depreciate, so it is perfect for those trying to hold on to their capital instead of taking a risk and losing it.
4. Natural Disasters- Analysts have shown that natural disasters tend to cause fluctuations in value for silver and others in the same sector. This may partially be the result of negative thinking, and also a tendency by individuals to hold on tight to resources that may be needed in the near future.
5. Recession– When a recession occurs then the economic downturn makes most people nervous, and less capital is spent on stocks, bonds, and other more risky vehicles. This is especially true for older investors who have experience with long periods of economic activity during the 19th century.
6. Currency Strength Or Weakness- The strength or weakness of the US Dollar is one of the factors that can impact what is charged for an ounce of ore. When the dollar gets weaker then precious metals tend to increase in their perceived value. As the currency gains strength then this sector is less attractive, and there are fewer individuals hoping to buy so lower costs are seen.
7. Industry Regulation- Many in the world of investment get nervous whenever new regulations on the market are discussed. The recent changes have caused many to choose silver or gold rather than stocks and other choices, and new proposed legislation could make this even worse.
8. Political Events- Political events can cause almost every vehicle on the markets to see changes. These events can include elections, coups, divided governments, and even gridlock like what is currently going on in Washington DC.
9. Supply And Demand- When supply exceeds demand then the value placed on the vehicle will go down, and when the opposite happens then an increase is seen instead. There are many things that could interfere with the supply of the bullion to the market. Demand is set by the individuals who want to buy, and this can be affected by emotion as well as a number of other considerations.