Because steel is an alloy and the goblins from days of yore probably hadn't invented it yet. Steel is magnetic which is rather a poor quality to have in a magical sword if your enemy can hold up a magnet and get the weapon from you.What's wrong with goblin-forged steel? Does silver have magical properties that would make it preferable to steel? Or did J.K. Rowling just think silver sounded cooler than steel?
Silver has a longer history - Greeks/Romans etc used it in medicine and it's a precious metal.
And yeah, it's far far far far cooler than steel.
It can probably conduct magic and absorb magic better than another metal. And it's harder than gold.Originally Posted by Wiki