What Does The Future Hold For Silver Prices?
Silver has many unique properties that in many cases are irreplaceable by less expensive alternatives. Historical uses for silver have been jewelry, photovoltaic and silverware. Currently silver is used in a wide variety of applications such as electronics and photovoltaic solar cells, and as an antibacterial agent that will almost guarantee that the demand for silver in these expanding markets will grow. For example the photovoltaic industry where it has been reported that silver use went from 3Moz in 2004 to about 50Moz in 2010.
In established applications such as electronic connectors there has been tremendous expansion in the use of silver. Consider the example of automotive electronic connectors. The increase use in this area is not just connected to automotive demand, but rather the expansion of features such as navigation systems and electric seats. These features were once limited to luxury vehicles are now available in less expensive vehicles.
Silver is also used in many electrical devices, such as superconductor, super-capacitors, solid-state lighting, and batteries. You can add to this the growing Nano technology that will make electrical components smaller and more efficient. This should increase the level of consumption for these high tech products.
Then there is the burgeoning demand for silver as an antimicrobial agent in the medical community, water purification and wood preservation industries. Silver is also widely utilized in the manufacturing of solvents, plastics, and disinfectants. It is also used in solar panels that have grown in popularity over the last decade. However, it is significant to note that silver is only used in the “thick film” panels and not in the competing design of “thin film” panels, which do not use silver.
In the past 12 months silver has seen major price increase. This upsurge should not be attributed entirely to the demands of industry. Due to the world economic downturn there has been an increased demand for precious metals by investors seeking a hedge against currency devaluation. The price of gold has also sky rocked to the point that it is becoming out of reach of small investors. On the other hand silver is at price point that is more reasonable for smaller investors. A global economic up swing could see investors shift out of metals and into other equities, but this reduction in investor demand could be offset by an up tick in industrial uses.
Bruce Holmes is an online marketing coach. Learn how to create a cash flow with silver at Numis Network. Learn to create real wealth and cash flow with silver join Numis Network.
April 28, 2011 | Posted by Bruce Holmes
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