Why Did Silver Fall Faster Than Gold?

Gold and silver often move in the same direction, but silver can move further. That does not mean every silver object loses the same percentage of its resale value in a single day.

The September 28 comparison

At 1:30 p.m. Eastern on September 28, Reuters put spot silver at $61.39 per troy ounce, down 4.5% on the day, and spot gold at $4,136.81, down 3.5%. These numbers are a moment in a moving market; the percentages compare each metal with its own previous price, not silver's dollar value with gold's.

Silver has two sources of demand

Like gold, silver is bought as a precious metal. Unlike gold, it also has substantial industrial use, including electrical and electronics applications and solar technology. The Silver Institute's World Silver Survey tracks industrial fabrication alongside investment and jewelry demand. When investors worry about both tighter money and slower growth, silver can face more than one kind of concern at once.

That does not establish that industrial demand caused this particular day's drop. Reuters emphasized higher oil, interest-rate expectations, Treasury yields and the dollar in its September 28 report. Silver can also have larger percentage swings than gold; a one-day comparison alone cannot establish a lasting trend.

Does a lower silver quote change a sterling offer?

Sterling is normally 92.5% silver by purity, while a silver-plated tray contains only a thin coating. Coins may carry collector value beyond metal content. A dealer should identify the item, verify purity and weight, check the current price, and tell you whether any collectible or resale premium applies. Never assume a headline spot quote is what a buyer will pay for each troy ounce of sterling goods.

• Look for a 925 or sterling mark, but confirm it with appropriate testing.
• Keep collectible coins uncleaned and ask for an individual evaluation.
• Ask to see the current market quote used when an offer is made.