Silver could be one of the best performing investments as the world comes out of the current recession in late 2009 and into 2010. Why is the outlook for silver so rosy? For starters silver is used in almost all kinds of electronic circuits. Silver based solder does not corrode and has a high conductivity factor that makes it a key ingredient of the electronics industry. Silver is used in virtually all mirrors. Solar collecting arrays, which are the most efficient way of converting the sun’s energy to electricity, use silver as a backing. Photovoltaic or solar panels use silver solder. These two technologies will use tons of silver as they become our main source of energy over the next decade.
Silver has long been valued for it’s unique properties. It does not corrode and maintains a brilliant luster with only minor polishing. It has antibacterial and antifungal properties and is used as an additive to the lining of some refrigerators, food storage containers and hospital equipment. Collodial silver is widely used in alternative medicine as a proven antiseptic and to treat fungal infections.
The use of silver in industry and medicine is growing and there is one thing that the current price of silver does not reflect. The USGS or United States Geological Survey publishes an annual summary of the amount of any given metal including gold and silver.
At current consumption rates all of the silver remaining in the earth’s crust (that is feasibly recoverable) will be gone by the year 2034
There is enough gold remaining in the earth’s crust at current mining rates to sustain production until somewhere areond 2060.
Roughly speaking, silver is twice as rare as gold in the long term since it is not recycled like gold.
Silver is recycled only about 40% of the time compared to 99% for gold. This means that silver is literally dissapearing, never to be recoverable (economically) again.
In addition to the industrial value, silver has long been recognized as a vehicle to store wealth. The English Pound gets it’s name from “pound sterling” or sterling silver which was once it’s basis.
The list of those buying silver is large. From countries such as Russia and Saudi Arabia to Christians and survivalists who believe in the collapse of the U.S. Dollar. “Doomers” of people predicting a collapse of the financial system believe silver and gold will be the only real currency. See http://www.peakoilstories.com
Investing in silver may be the best move you can make as commodities come into favor again. It is also a great inflation hedge. Buy some silver now, before it goes to $100 per ounce.