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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.

Silver prices dropped to about $33.30 an ounce on Friday, reversing gains from earlier in the week as the dollar strengthened due to pressure on commodities denominated in greenbacks. As US President Donald Trump asserted that trade talks with China are still underway, the dollar appreciated, and further indications of progress in talks with South Korea and Japan bolstered investor confidence. In an effort to further defuse the trade conflict, China is also allegedly thinking about removing its 125% tariff on a number of US imports. Additionally, Trump retracted his criticism of Federal Reserve Chair Jerome Powell last week, claiming he never intended to succeed the head of the central bank. Meanwhile, Cleveland Fed President Beth Hammack said a move could come in June if supported by data.

U.S. President Donald Trump announced plans on April 2 to impose a 10% universal tariff on all imports, with several nations to face considerably higher tariffs. Most commodities, including gold and silver, were trading higher prior to that announcement because traders anticipated that the tariffs would cause inflation. As gold is gleaming as an industrially worthless safe haven, like it did during the initial wave of the COVID crisis, that would weaken demand for industrial inputs, including silver. The metal's price has been affected by worries about the economic effects of tariffs and decreased international trade. Silver is heavily used in industry, notably in electronics and solar, thus a downturn in the economy produces a "headwind" for the metal. The price of silver is "economically sensitive,"