Silver is a precious metal less common than gold, often extracted alongside base metals like copper, lead, and zinc. Approximately 70% of silver production is a byproduct of these metal extractions. Due to this complex process, only about 20,000 tonnes of silver are mined annually.
Silver’s history dates back to the 5th millennium B.C., used by ancient civilizations for various purposes. Egyptians referred to it as “lunar metal,” and by the 6th century B.C., Greeks introduced the first silver coins, establishing its role in monetary systems. Silver held significant political and economic importance, surpassing gold in value until the 20th century.
The precious metal’s versatility extends beyond currency and jewelry. Silver finds applications in electrical engineering, photography, and even food technology and pharmaceuticals due to its antimicrobial properties. In 2007, major industrial consumers of silver included the United States (23%), India and Japan (16%), and Italy (7%).
Driven by consistent demand and diminishing supplies, silver prices have experienced a steady increase in recent years. This scarcity contributes to the metal’s fluctuating value in the market.
Major silver producing countries include Mexico, Peru, and Australia, with significant contributions also coming from China, Poland, Russia, Canada, and the USA. These nations play a crucial role in supplying the global silver market.
Key trading hubs for silver include the New York Mercantile Exchange (COMEX), the Tokyo Commodity Exchange, the Chicago Board of Trade, and the London Bullion Market. The total value of silver traded on these exchanges is estimated to be around 17 million US dollars. These markets provide platforms for investors and businesses to buy and sell silver, influencing daily silver prices.
