Market study shows that the value of Silver The average price of silver oscillates due to the simple economic law of demand and supply. After jewelry and silverware, silver was largely consumed in the photographic industry. However, as a direct result of the wide spread acceptance of digital photography, there has been a steady decline in silver usage from this industry.

A final argument in silver’s favor for those who believe in reversion to the mean is the level of the gold/silver ratio. At the moment, you need 63 ounces of silver to buy one ounce of gold. 2,500 years ago, when coins were first made in ancient Greece, the ratio of gold to silver was generally between 10:1 and 13.5:1. In the 1930s and 1940s the ratio reached 90:1 or higher, and in 1991 it peaked at about 98:1.