As silver prices rose slightly on October 21, attention is turning to the direction of the precious metals market, including silver, amid continued weakness in tech stocks on the New York Stock Exchange.

▶ Silver Price on October 21… 10,360 Won When Buying, 8,620 Won When Selling

According to the Korea Gold Exchange, the day's silver price (3.75g) was 10,360 won when buying and 8,620 won when selling, up 0.97% and 0.93% from the previous day, respectively. According to Geumsise.com, the price was 10,050 won when buying and 9,750 won when selling, up 100 won and 450 won respectively from the previous day.

▶ Semiconductor and Large-Cap Tech Stocks Weaken on the NYSE

On the New York Stock Exchange on the 21st, major semiconductor stocks such as Micron Technology, Nvidia, and AMD all closed lower. Micron finished trading at $896.07, down 0.98% from the previous session, while Nvidia closed down 0.29% at $216.47 and AMD ended 0.62% lower at $534.74.

Decliners also outnumbered gainers among large-cap tech stocks. Meta fell 1.59% to close at $694.25, Apple dropped 1.00% to finish at $339.50, and Microsoft also declined 0.31%. In contrast, Tesla rose 1.54% to $373.71, and Amazon.com gained 0.07%.

With stock movements diverging even within the tech sector, attention is focused on what direction silver prices will take. However, a decline in tech stocks does not directly translate into a rise in silver prices, so the stock market and the precious metals market need to be examined separately.

▶ Silver Prices Are Driven by Different Factors Than the Stock Market… Influenced by Industrial Demand, the Dollar, and Interest Rates

The silver market has different price determinants than the stock market. Silver is classified as a precious metal alongside gold, but it is also used as an industrial raw material. Because it is used in electronic and electrical components and solar-related industries, it is influenced not only by investment demand but also by manufacturing and industrial activity. This characteristic is also why silver prices do not move solely on financial market uncertainty.

When investors' risk aversion strengthens, interest in precious metals may rise, but if concerns about an economic slowdown weaken the outlook for industrial demand, this could weigh on silver prices. In particular, unlike gold, silver is a metal with a considerable share of industrial demand. Therefore, the impact on the silver market may vary depending on whether the decline in tech stocks stems from a broader market-wide risk-off movement or from concerns about the industrial economy and corporate earnings.

The U.S. dollar and interest rate movements are also important variables. Since silver is traded mainly in dollars on the international market, changes in the dollar's value affect the purchase costs of investors using other currencies. In addition, silver does not pay interest simply by being held, so changes in interest rates and bond yields can also affect investment demand.

▶ International Silver Price and Dollar Index Not Included in Data… 'Comprehensive Verification Needed'

However, the NYSE trading data provided on this day did not include the international silver spot price, silver futures closing price, dollar index, or U.S. Treasury yields. Therefore, whether silver prices actually rose or fell on the 20th, and by how much, cannot be confirmed from this data alone.

Ultimately, to assess the relationship between tech stock weakness on the NYSE and silver prices, silver's own trading prices and supply-demand flows must be examined together. The decline in semiconductor stocks and large platform companies only reflects trends in the stock market, and it is difficult to determine the direction of the precious metals market from that alone. This is because in the silver market, investment demand as a financial asset and physical demand as an industrial metal operate simultaneously.

Separately from the NYSE trends on the 20th, when tech stocks weakened, future assessments of silver prices should comprehensively consider international silver prices, the dollar, interest rates, and changes in industrial demand.

[This article is by no means an investment solicitation. The content may merely reflect opinions, so please do not use it as a reference or material for investment. All investments are made at the discretion of each individual, and the final responsibility lies with the investor. This publication bears no responsibility whatsoever.]