How the Price of Silver Is Determined
At Cape Town Silver, every piece we create begins with a material that trades on a global stage. The silver price you see quoted in South African Rand (ZAR) is based on the international spot price, measured in troy ounces, the official unit used in professional precious metal markets. One troy ounce of silver is equal to 31.1035 grams, and this benchmark sets the foundation for silver pricing worldwide, from London to Cape Town.
So what actually determines the price of silver? At its core, it comes down to supply and demand, but the story doesn’t end there. Interest rates, inflation, and currency fluctuations play a major role, particularly for countries like South Africa where the Rand can move sharply against major currencies. Add to that geopolitical events, economic policies, industrial demand and technological advances, especially silver’s growing use in electronics, renewable energy and medical applications, and you begin to see why silver prices are rarely static. Speculative trading and market sentiment further amplify these movements, often pushing prices higher during periods of uncertainty.
In recent years, silver has seen a notable upward trend. Global inflationary pressures, increased industrial use and investor demand for tangible assets have all contributed to higher spot prices. When silver rises internationally, the effect is often magnified locally due to Rand volatility. For the retail jewellery industry, this means higher raw material costs, tighter margins and the need for careful pricing without compromising craftsmanship or integrity.
What does this mean for the market and for you as a customer? Silver jewellery is no longer just a beautiful accessory; it is increasingly recognised as a store of value. At Cape Town Silver, we view rising silver prices not as a challenge, but as a reminder of the enduring worth of well-made jewellery. When you invest in silver, you are wearing something shaped by global markets, skilled hands and timeless value – a piece that reflects both beauty and substance in a changing world.
