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Silver has long been valued as a precious metal. The metal silver is used in many bullion coins, sometimes along with gold. In addition to currency and as an investment vehicle (coins and bullion), silver is used in solar panels, water purification, jewelry, decorations, tableware and high-value utensils. (hence the term "silverware"), in electrical contacts and conductors, in mirrors, in particular as window coatings, in the catalysis of chemical reactions, as a colorant in stained glass and in special confectionery. Its compounds are used in X-ray photography and film. The world's largest silver producers are currently Mexico, Peru, China, Russia and Chile as the next largest silver producers, while the countries with the largest silver reserves are Peru, Australia and Poland.

Prices of silver rose above $30.6 an ounce on Friday, bouncing back from 11-week lows as demand for the precious metal in safe havens increased due to mounting geopolitical worries. Following a slew of massive Russian attacks on vital Ukrainian energy facilities, Russian President Vladimir Putin issued a warning about the potential use of nuclear-capable ballistic missiles against Ukraine. Tensions erupted in the Middle East as Israel and Hezbollah scuffled over alleged breaches of a ceasefire deal that took effect on Wednesday. A declining dollar and lower Treasury yields, which were fueled by anticipation that the US Federal Reserve would keep lowering interest rates, also helped silver prices. As traders awaited further information on the plans, worries about US President-elect Donald Trump's proposed tariffs on China, Mexico, and Canada also subsided.

While the silver price outlook is influenced by supply and demand, it is also heavily influenced by investors buying the precious metal as a safe-haven asset during times of economic or political uncertainty. Going forward, geopolitical events, the global socioeconomic impact of COVID-19 and future Fed rate changes will be key factors to watch out for.