Generally the reasons are pretty similar to gold
- It has intrinsic value, it cant be printed or manipulated by central bankers, politicians and governments.
- Silver like Gold it has been a stable form of currency and store of value for thousands of years, it is a hedge against inflation and money printing.
- The cash cost to mine silver varies but averages around $18-20, in theory that should put a floor under the price, if the price goes under this level it becomes uneconomic to mine it.
- Unlike Gold, silver is primarily an industrial metal and most of it is consumed in industrial applications, therefore reducing the amount of silver supply in circularion and increasing the price.
- The gold/silver ratio favors silver at the moment this means that in relation to gold silver is undervalued (on a historic basis)
These are just a few reasons there are others but also bear in mind that silver has had an impressive run over the past decade so could be due a correction. Long term however I think the fundamentals of silver are incredible and if you are buying to hold it long term the current fall in price presents a pretty good opportunity (Just my opinion, there is always risk the price could fall further)