A large part of the demand for silver comes from industrial demand, accounting for about 40%. On the contrary, the demand for gold is basically pure investment demand and jewelry demand. Because of the close relationship between silver and industry, silver is very sensitive to changes in economic factors, such as industrial productivity and manufacturing demand.
Different product resources
Most silver is a by-product of lead, zinc, copper, gold and other metals. In this way, the relationship between silver production and silver price is not as close as that between gold production and gold price.
Different degrees of fluctuation
Under the same influence, the fluctuation of silver will be more obvious than that of gold. Whether investors choose to invest in gold or silver often depends on what kind of investment purpose they want to achieve. Investors who choose gold generally want to hedge against inflation risks, while investors who seek periodic price rebound in the global economic background may choose silver investment.