Properties of Silver

Natural Properties of Silver
Silver, with the chemical symbol Ag and atomic number 47, has an atomic weight of 107.870, a melting point of 960.8°C, a boiling point of 2210°C, and a density of 10.50 grams per cubic centimeter (at 20°C). The heat of fusion is 11.40 kJ/mol, and the heat of vaporization is 251.20 kJ/mol.
Silver is soft, with excellent malleability and ductility, second only to gold in ductility. It can be hammered into thin sheets and drawn into fine wires. One gram of silver can be drawn into a 1800-meter-long wire and rolled into silver foil as thin as 1/100,000 millimeters.
Silver has the best electrical and thermal conductivity of all metals. It also has excellent reflectivity, reaching up to 91%.
Chemically, silver is stable and unreactive at room temperature. It does not react with oxygen but forms a black tarnish (silver sulfide) when exposed to hydrogen sulfide in the air. At room temperature, halogens can slowly react with silver to form silver halides. Silver can react with strong oxidizing acids like concentrated nitric acid and hydrochloric acid. Silver powder dissolves in oxygenated cyanide solutions and acidic thiourea solutions.
Silver has excellent alkali resistance and exists in a +1 oxidation state in compounds, forming various compounds with different substances.

Main Uses of Silver

Monetary Function

Silver has monetary properties and historically served as currency, similar to gold. In addition to the gold standard, there was also a silver standard in monetary history. As monetary systems evolved and credit money emerged, silver coins gradually disappeared from circulation. Today, minted silver coins are primarily investment and commemorative coins, while the consumption of other silver investment products like silver bars is increasing.

Industrial and High-Tech Applications

Silver’s excellent conductivity, malleability, ductility, and reflectivity make it valuable in various industries, including electronics, photography, solar energy, medicine, and jewelry making.
Silver’s multifunctionality makes it irreplaceable in most industries, particularly in high-tech sectors that require high reliability, precision, and safety. Silver can be used in thick-film pastes, and silver in mesh and crystalline forms serves as a catalyst for chemical reactions. Silver nitrate is used in silver plating, and silver mirrors are made with silver. Silver iodide is used in artificial rainmaking.
Silver ions and silver compounds have antimicrobial properties, able to kill or inhibit bacteria, viruses, algae, and fungi. Because of its disease-fighting effects, silver is also known as a "biophilic metal."

Silver Price Trends and Influencing Factors

Factors Affecting Silver Prices

Supply and Demand

Supply and demand are the fundamental factors that influence silver prices. Typically, when supply exceeds demand, prices fall; when demand exceeds supply, prices rise. Price fluctuations, in turn, affect supply and demand. When prices rise, supply increases while demand decreases; conversely, when prices fall, demand rises while supply decreases. Discoveries and extraction of new deposits, the application of new technologies, maintenance and strikes at production facilities, and trade policies will affect production and supply. The development of silver’s application areas and changes in investment preferences will influence demand.

Global Political and Economic Situations

Silver is an important industrial raw material and a safe-haven asset. Its demand is closely related to economic and political conditions. During periods of economic growth, silver demand increases, driving up prices; during recessions, silver demand contracts, causing prices to drop. In recent years, to address the financial crisis, many countries have implemented loose monetary and fiscal policies, injecting large amounts of liquidity into the market. As one of the assets used to hedge inflation, silver has seen a price rise driven by investment demand. However, when monetary easing policies end, silver prices tend to experience significant declines.
Unresolved sovereign debt crises in the Eurozone, inflation pressures in emerging economies, nuclear accidents in Japan due to earthquakes and tsunamis, and political instability in the Middle East and North Africa have added uncertainty to the global economy, directly or indirectly affecting silver prices.

Exchange Rates of Major World Currencies and Gold Price Trends

International silver trading is typically priced in US dollars, and several major currencies now adopt floating exchange rates. Historically, silver and gold have both served as currencies, sharing similar financial characteristics. Thus, silver prices tend to show a positive correlation with gold prices, although this is only a general trend. In the short term, silver prices tend to fluctuate more sharply than gold prices.

Fund Investment Direction

With a significant increase in fund participation in commodity futures trading, funds have played a major role in silver price fluctuations. Funds have an information and technical advantage, giving them a foresight advantage. The silver ETF (Exchange Traded Fund) has expanded rapidly in recent years, with high holdings. The trading direction of these funds is one of the factors influencing silver price fluctuations. Analyzing fund positions helps predict silver price trends.