Silver's role in the global economy is more nuanced than other precious metals and is heavily tied to industrial applications. As a result, silver prices are influenced by a variety of complex factors that go beyond traditional market drivers like supply and demand.
Silver's demand is driven by a combination of industrial, investment, and jewelry markets with the automotive industry being the largest consumers. However, as the global automotive industry shifts toward EVs, the demand for silver needed for batteries and solar will increase
Silver is also valued as an investment asset that investors often turn to as a hedge against economic uncertainty. During periods of economic recession or geopolitical tension, demand for silver as a safe-haven asset may increase, driving up prices.