Is The Future Demand For Silver On The Rise?
Posted on February 26, 2011 by Bruce Holmes
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.
There has been a tremendous expansion in the use of silver in established applications such as electronic connectors. 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 needed in so 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 demand for these high tech products.
Then there is the growing need for silver as an antimicrobial agent in the medical community, water purification and wood preservation industries. Silver is also widely used in the making of solvents, plastics, and disinfectants. It is also used in solar panels that have grown in popularity over the past decade. However, it should be noted that silver is only used in the “thick film” panels and not in the competing design of “thin film” panels, which do not utilize silver.
Silver has seen huge price increase in the last 12 months. This increase should not be attributed entirely to the demands of industry. Due to the global economic downturn there has been an increased demand for precious metals by investors looking for hedge against inflation. The price of gold has also increased to the point that it is becoming out of reach of small investors. Alternatively silver is at price point that is more reasonable for smaller investors. A global economic up-turn could drive investors 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 a small business advisor. For an alternative way to make money with silver check out Numis Network. Turn silver into a business at Numis Network.