Silver is often overshadowed by gold, and its value can be overlooked. Investing in silver might not be as popular as investing in gold, but it is still just as important and versatile.
This noble metal has had a crucial role in human history, with its origins going almost as far back as gold’s. It has played a particularly important role in photography, electrical conductivity and currency. Even though silver is no longer widely used in coins or other forms of currency, many still choose to invest in it due to its fluctuating price on the world market and its industrial importance.
Useful Properties and Everyday Applications
Silver has several properties that make it useful in many different applications. It is especially appreciated for its bright colour and reflective surface, which is why it has been utilised in home decor and other household items like mirrors, cutlery, candelabras, plates and decorations.
The white metal is more than just attractive; it is also highly durable in extreme conditions. Silver is highly malleable and can easily be pressed into thin sheets or formed into long threads. Like all other noble metals, it is also highly resistant to corrosion and oxidation. Even if it cannot be seen from the outside, silver is used in almost all electronics and components, and its role is also growing significantly in the development of electric vehicles.
It also has very important antibacterial properties, making it perfect for warding off infections and bacteria in medical equipment and instruments. Silver-based treatments can also support wound healing and are used in some medical applications.
A Volatile Market
If silver is such an important noble metal, why is it not as valuable as gold? And why does it not attract as many investors? In brief, it is due to how the market reacts to demand and silver’s role in several different industries.
The metal is much easier to obtain, and the silver market is smaller and more volatile, which means that it is not as stable and safe of an investment as gold. Because the silver market is smaller and less liquid than the gold market, large purchases or sales of silver have a much larger impact on the market price. The combination of the industrial use of silver and the small market means that its prices fluctuate more dramatically and often than gold prices. In addition, gold is seen as a stronger financial investment, and even central banks have their own reserves of it.
The silver market is also very dependent on different industries and how silver is mined and sourced. Silver is one of the most common metals used in industrial applications, and industrial producers often need silver regardless of price, because it is essential to their production processes. Producers purchase silver based on their needs, not the price of it.
Unlike gold, silver is not mined from specific mines, as it is a byproduct of mining other metals and materials such as copper, zinc and gold. This means that when the demand for silver increases, the supply for it cannot be increased equally as it would require mining other metals at the same time.
Silver Is Not the Only Metal That Shines
No matter how important silver is as a material and metal, it is not the only grey metal with a shiny surface. White gold, platinum, alpaca and stainless steel are especially easy to mistake for silver and vice versa.
To see the differences between the metals and alloys, you have to look on the inside or backside of the item. Silver is most often marked 925, which indicates that the item is made of 92.5 % pure silver, or sterling silver, as it is also called. White gold, on the other hand, can have several marks that tell the fineness in millesimals. The most common marks and finenesses are 333 (8K), 585 (14K) and 750 (18K). You can read more about white gold in our article on it by clicking here.
Platinum, alpaca and stainless steel are less often marked with purity marks, but rather marks that confirm what material the item is made from. Platinum often has the marks 950 or Pt950, while stainless steel often is marked stainless steel, steel, Inox, 18/10 or 18/8. Despite its name, alpaca silver (or German silver or new silver, as it sometimes is called) does not contain any pure silver. It is an alloy of copper, zinc and nickel. Alpaca is often marked Alpaca Silver, ALP or NS.
There are also other physical properties that set the materials apart. Silver is a softer material and might darken with time, while platinum is very heavy for its size. As the rhodium plating on white gold wears down, it might reveal a more yellow hue underneath. Stainless steel again, by contrast, does not wear down as easily and is a durable and hard material resistant to most daily use.
Take Full Advantage of Unused Silver
Different silver and metal coloured materials can look very alike and marks on the inside or backside of items can be worn or missing. That is why it is always good to have them checked and evaluated by an expert. Gold Arthur valuates and purchases all marked silver items.
Even if you are unsure what your items are made of, you are welcome to bring them in for a free valuation. Our experts will explain each step of the process for you and tell you what is real silver or white gold and what is not. Silver might have a lower market price than gold, but many have much more of it at home. By collecting all the old cutlery, jewellery and other items and bringing them to us, you may be surprised about just how much they are worth.
