INVESTING IN SILVER
Silver demand comes from four main categories: industrial, photography, medical, and jewelry/silverware. Industrial uses account for more than half of annual demands worldwide over the last five years. This means that economic growth can affect silver prices far more than it affects gold. Only 10-15% of annual gold demand worldwide comes from industrial use, the rest going to jewelry and investment.
Because of silver’s physical strength, brilliance, malleability and ductility (it can be squashed or pulled into shape), people have also used silver in jewelry, tableware and fine art for thousands of years. Industrial applications use silver’s conductivity (the highest of any element for electricity and heat) as well as its sensitivity to light and anti-bacterial qualities. Historically, silver became a metal of value because of its non-corrosive elements; in today’s modern age, it is used in almost all electronic devices because of its high conductivity to heat and electricity.
SCARCITY & INDUSTRIAL USE
Silver is a scarce metal; therefore, categorized as a precious metal, however it is the least expensive of them all, making it an affordable investment for the masses. The supply of silver has grown over the past years; however, keeping up with the demand from emerging countries whose population is just getting a taste for electronics is going to make supply an issue. Industrial use made up 46% of all silver demand in 2010, a growth of 87 million ounces from the previous year. General silver demand grew by over 178 million ounces. If the demand for silver continues, the price of silver will continue upwards, supported both by its value as a metal and its industrial use.
Silver is a precious metal with a diminishing supply, unlike gold, which is stored almost indefinitely, silver is consumed quickly and not hoarded. Since World War II, the United States government has sold over $5 billion ounces of silver and currently has no reported stores
For a new silver mine to become active and ease the supply burden, it can take tens of millions to hundreds of millions of years to start production.
The historic high for silver is $50.00 an ounce, adjusted for modern-day inflation that is over $120.00 per ounce. More amazing is that when silver did hit $50.00 an ounce, its industrial demand was just a fraction of what it is today.
Silver has always had more volatility than gold in the market, making it a great place for traders to take a profit and relatively inexpensive compared to gold, which is over $1,300.00 an ounce.
*To learn more about protecting your financial future with investments in gold, silver, platinum and palladium, take the first step today by calling Rocky Mountain Precious Metals, LLC at (424) 362-2763 or click the link above to open an account online today.
Silver Bullion Bars
Made of 99.9% pure silver, bullion bars come in a variety of sizes, styles and brands. Bars range in size from 1 ounce to 1,000 ounces. Bars can be “cast” or “minted”. There are many different “hallmarks” (the name/brand for the refiner who produced the bar). Small bars: 1-ounce to 100 ounces are manufactured to precise specifications and contain the corresponding amount of pure silver. Large bars: 1,000-ounce bars are “odd-weight” bars. “1,000-ounce bars” can weigh between 900 ounces and 1,100 ounces. All silver bullion bars are bought and sold based on their gross weight. Silver bars can be shaped differently depending on the brand.