Silver – The Precious Metal with Utility
Investors considering investing in precious metals usually think first of gold, but their research will turn as well to silver. Both are in demand for jewelry and fine art items. They glitter and impress when they adorn our lives, but gold generally commands the superior position. They are also both used in industrial applications, but silver is more in demand for manufacturing and electronic processes and products.
While diversification should guide you to hold both gold and silver in your investment portfolio, let’s look at some of the interesting uses for silver that hold the promise of ever increasing demand:
Electronics – Silver is highly conductive, allowing even tiny electrical currents to pass through with little resistance. For this reason, silver is used in millions of electronic products, circuit boards and even solder and brazing materials.
Medical – Of all of the chemical elements, silver is the most antibacterial, as well as providing antibacterial benefits with a very low toxicity to humans. It interrupts the ability of bacteria to form chemical bonds necessary to their growth and survival. When added to water, silver ions are released which kill and prevent biological growth.
Photovoltaic technology – Photovoltaic cells convert sunlight to electricity. The solar power industry is steadily growing as the science and technology are perfected to provide large amounts of electrical power from solar panels. Silver is printed into every photovoltaic cell because it is so incredibly conductive, making them more efficient.
Mirrors – This one is interesting because almost every mirror you look into is passing your reflection back because of a fine layer of silver nitrate sprayed onto the surface to provide the reflectivity.
Those are just four of hundreds of uses for silver in industrial, medical and manufacturing processes. Demand is expected to increase steadily for silver in these use profiles. The law of supply and demand is powerful, and as the demand increases, the price for silver is expected to increase with it.
In a report titled World Silver Survey 2016, issued by the Silver Institute, two quotes out of the extensive report speak to the outlook for silver going forward:
“In 2015, silver retail investment and jewelry fabrication hit a record high and mine production growth declined to its slowest pace in four years. The silver market realized an annual physical deficit for the third consecutive year in 2015.”
“In the first quarter of 2016, although safe haven demand was the primary driver, the relatively stronger market fundamentals acted as a spring board for silver prices, particularly given the continued elevated demand for coins and swelling concern about mine supply reduction in the future.”
In these two short statements, we see two of the drivers of increased future prices. Lower supply with increasing demand. This is a perfect storm for silver investment.
Contact a PM Capital Representative to find out how you can add Silver to your investment portfolio and begin to diversify your investments today. Call 800-599-8391.