London and New York are the two major global markets that determine Silver Prices. Silver is much cheaper compared to gold. While at one time the metal was being traded at around one-sixth the price of the yellow metal, by 2010 its price became just one-eightieth of gold price. In the silver market, trading depends upon future delivery. London is the largest silver market in the world.
The US dollar has an impact on the price of silver. When the US dollar strengthens silver loses its value, and when the US dollar weakens the value of silver rises. Traders look forward to Silver Prices to act as a hedge to counter inflation.