Silver (XAG/USD) is gold's faster, wilder cousin. It's both a precious metal and an industrial one — which makes it move harder than gold in both directions. Here's a grounded introduction.
What moves silver
- The US dollar and real yields — like gold, silver is priced in dollars and tends to fall when the dollar and real yields rise.
- Industrial demand — silver is used in electronics, solar panels and more, so the economic cycle matters more than it does for gold.
- The gold/silver ratio — traders watch how many ounces of silver equal one ounce of gold to judge relative value.
Its character
Silver is more volatile than gold — sharper rallies, deeper drops. That extra movement is the appeal and the danger. It also has lower liquidity than gold, so spreads can be a touch wider.
Trading it sensibly
- Trade with the higher-timeframe trend; silver trends can be strong but reversals are abrupt.
- Use clear support and resistance and round numbers.
- Because of the bigger swings, give stops room and size smaller to keep risk fixed — use the position-size calculator.
Silver offers gold's drivers with more speed. Respect the volatility and let it set your size.
Education only — not financial advice.