In crisis situations and lack of money, many citizens decide to sell a piece of jewelry, and when the choice falls on the one made of silver, it seems that they will not really bother.
Namely, the purchase prices of this precious metal in Serbia have not changed significantly in the last year, although on the world market, due to the growing demand, there is a noticeable increase in the price of silver.
Thus, the price of silver reached the amount of about 27 dollars per ounce, which is about 70 percent more than a year ago, which is far more than the price of gold increased in the same period, which increased by 6.4 percent in a year.
So, the growth of the price of silver on the world market did not lead to big changes in the price of this precious metal on the domestic market, at least when it comes to redemption, where the price depends on the purity of silver, the current value on the world stock exchange and the dinar. Namely, in the middle of last year, when a gram of silver on the stock exchange cost around 50 cents, in Serbia, a gram of silver in redemption cost half as much.
Now, when the stock market price of this precious metal is around 75 cents, the purchase price is around 25 cents, on average. Of course, the purchase prices depend on the place where it is purchased and are varied, so a gram of silver in the purchase costs about 35 cents and a little more, and the price for a gram of silver of lower purity is somewhat lower – about 25 cents and up.
According to the words of the legal advisor in the Association for Consumer Protection of Vojvodina, Marko Dragic, it cannot be said that, when it comes to the price at which silver is bought in Serbia, it is an unfair trade.
Bad business policy that does not benefit consumers
“In fact, it would be more accurate to say that this is a bad business policy that does not benefit consumers, but only traders. Determining the purchase price of silver is not legally defined, but the price is formed in accordance with supply and demand, as well as when some other goods are in question, ie it is a free market. Apparently, the price of buying silver is determined by the buyer, and it is up to the seller to decide whether he will sell that flammable metal at the price offered to him,” points out Dragic.
He emphasizes that in some cities there is a monopoly on the market of buying silver and that in that way, practically, the market is narrowed because in the places where silver is bought, the same price applies, which suits the collectors.
“Due to the lower purchase price, the buyer is at a loss, but the business of those who are engaged in this business is in accordance with the applicable regulations and the law,” Dragic points out.
He notes that the existence of a monopoly on the market is a problem that exists in many other areas as well.
“It is similar, for example, in the market of electronic devices and household devices, because by merging the two largest players on the market, a monopoly was created and it is very difficult for other market participants to cope and survive. In order to avoid such situations, it is necessary to ensure a more regulated market and to monitor compliance with competition rules more often, and that is the task of the Agency for Protection of Competition, which should influence the situation as small as possible, ie to prevent monopolies which go exclusively to the benefit of traders, and to the detriment of consumers,” says Dragic.
Industrial use
The industrial use of silver is one of the main reasons for the rise in market prices. Namely, silver is used in numerous industrial activities – from electronics to the production of photographs, jewelry and coins. According to the Silver Institute, due to its high electrical conductivity and durability, almost all computers, mobile phones, cars and other devices contain silver. Also, silver is used in the production of solar panels, so the transition to green technologies is an additional factor that has significantly affected the growth of silver prices.
