Over the past decade silver has continued to net huge gains as people flock to it as a store of value during uncertain economic times. Furthermore, many investors believe that silver has a lot more room to climb to new highs. So, the question remains, why buy Silver?
Silver has many uses beyond just that of being a store of value. With the increased demand for silver throughout the world from both and industrial and investment store of value, today just might be the right time to buy silver.
The Miracle Metal
Silver is a very useful commodity that has thousands of industrial uses, including:
• Solar energy – it’s the main component of photovoltaic cells, which make up solar panels. Demand for the metal has risen with the demand for solar energy.
• Water purification – used in water purifiers to prevent the build-up of bacteria and algae. Millions of these purifiers are sold annually, and, more recently, silver is also being used to purify water systems in communities such as hospitals, public swimming pools and health spas.
• Medicine – the metal has been used for many years within the health industry, as a way to fight infection. It’s found in dressings and ointments, as well as high tech medical equipment.
• Technology – thanks to its antibacterial properties, silver is used in thousands of applications for sterilization purposes, from washing machines and dryers, to vacuum cleaners and air conditioning units.
• Electricity – it is the best conductor of electricity available to us, and used in everything from computers to TVs, cell phones to light switches. As our world gets more technical, so our demand for this metal increases.
Because of its vast uses and because silver has attracted a lot of attention from investors in recent years as a store of value, the demand for silver is at a record high. Prices are primarily determined by the ratio of supply to demand. Over the last thirty years, demand has exceeded the rate at which it is being mined to such an extent that that investment grade silver supply has been significantly depleted. Although gold sells for approximately fifty times more, it is the lighter counterpart could very well be a more attractive investment with greater potential investment returns going forward. Perhaps now is the time to considering buying silver.