So why should silver be a great investment in 2007? Silver costs less than other precious metals. It can tarnish and corrode. But because of its properties appearance, hardness, durability and scarcity it has been a valued trade item for thousands of years.
Traditionally in unsettled times, investors unload stocks,shares and paper currency and buy into commodities which hold real value. What factors then particuliarly favour a rise in silver prices now?
Increased Demand
Silver has become a vital important metal in manufacturing industry. While there is less call for silver jewellery and ornaments and use (as a silver salt) in photographic film, there is far more demand in electronics, and for coins and medals. Unlike gold, considerable quantities of silver is lost during and after use and cannot be reclaimed.
Additionally in industry, silver is generally used in relatively small quantities - as in reliable non corroding contacts, and circuit breakers - so a price rise wouldn’t much alter industrial processing costs.
Furthermore, there is no indication of this increasing industrial need for silver being cut. Silver usages as varied as catalysts, water purification, solar cells,motor controls and minature batteries continues to climb.
Increased Competition
Every developing nation including the two main industrial giants, China and the US are going to need more and more silver.Already they cannot get enough. Silver reclaimed from disappearing scrap or photographic waste can't begin to meet this shortfall,, so they will be competing with each other - and the rest of the world - for new silver. Not just for immediate use but to stockpile.
Shrinking Supplies
There are very few pure silver mines. About three-quarters of all new silver appears as a by product from lead , zinc and copper mines. This means that a sudden rise in silver price cannot not lead to extra output from these mines. However a price hike may push companies into carrying out new exploration, locating new lodes of silver-bearing ores,re opening old mines, and more efficient and novel silver recovery methods.
Traditionally in unsettled times, investors unload stocks,shares and paper currency and buy into commodities which hold real value. What factors then particuliarly favour a rise in silver prices now?
Increased Demand
Silver has become a vital important metal in manufacturing industry. While there is less call for silver jewellery and ornaments and use (as a silver salt) in photographic film, there is far more demand in electronics, and for coins and medals. Unlike gold, considerable quantities of silver is lost during and after use and cannot be reclaimed.
Additionally in industry, silver is generally used in relatively small quantities - as in reliable non corroding contacts, and circuit breakers - so a price rise wouldn’t much alter industrial processing costs.
Furthermore, there is no indication of this increasing industrial need for silver being cut. Silver usages as varied as catalysts, water purification, solar cells,motor controls and minature batteries continues to climb.
Increased Competition
Every developing nation including the two main industrial giants, China and the US are going to need more and more silver.Already they cannot get enough. Silver reclaimed from disappearing scrap or photographic waste can't begin to meet this shortfall,, so they will be competing with each other - and the rest of the world - for new silver. Not just for immediate use but to stockpile.
Shrinking Supplies
There are very few pure silver mines. About three-quarters of all new silver appears as a by product from lead , zinc and copper mines. This means that a sudden rise in silver price cannot not lead to extra output from these mines. However a price hike may push companies into carrying out new exploration, locating new lodes of silver-bearing ores,re opening old mines, and more efficient and novel silver recovery methods.
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