Why Silver Now?

 

Introduction:

 Silver's atomic number is 47. A soft white metal, with the highest electrical conductivity and the highest thermal conductivity. Current demand is rapidly surpassing production, as new technology is created and deployed. It's more than mercury dimes, jewelry and silver dollars. Silver is used in nearly everything electrical including, phones, laptops and computers. Usage and demand is limitless!

History:

 Throughout history, man has created different forms of money, from stones, to salt, even shells and beads. Yet silver and gold has always displaced most mediums of exchange. The invention of the printing press brought paper currency, debt and inflation. Central banks will never successfully create or substitute paper for real money, because they cannot print or manufacture silver. Current events in Europe, Asia, and the US, bare this out.

 

The chemical symbol Ag, is Latin, with the Indo-European root meaning white or shining and has been used as a precious metal for ornaments, utensils, and trade in early times. Recorded medical benefits include the prevention of infection, which dates to ancient Greece and Rome. In the Middle Ages, silver was used to disinfect food and water for storage. Sailors and pioneers, in the 19th century, would put silver coins in barrels of water and wine to keep it potable. Many countries in have approved its usage as an antibacterial agent. The list of applications and benefits increases daily.


 Currently the surplus/demand, is the lowest since 2008.

 Economists agree that silver consumption now exceeds production, with current shortages created by private hoards. This has caused the price of silver to rise dramatically in the last ten years. Now part of that shortage is made up from recycling jewelry, parts and film.

New mining production may be effected by short-term prices, also effecting profits. Production is a by-product of copper, lead and zinc.

 Silver Demand is at an All-Time High!

 Virtually all electronic devices use silver, so as technology, and it's demand, expands in countries such as China and India, with their billion plus populations, silver has transformed itself from coinage into a metal for electronics, computers, aerospace and medicine.

Since it is the best conductor of heat, the most reflective of light, and next to gold, the most resistant to corrosion, its chemical and physical properties are unique. As a conductor of electricity it is considered an industrial metal, with a monetary value.

Since WWII, an average of 200 new uses for silver were found each year, with many new patents issued. As technology progresses, it is reasonable to assume, new uses will be found.

Total fabrication demand grew by 12.8% to a 10 year high of 878.8 M.oz in 2013. The surge was led by industrial demand where applications grew by 20.7% to 487.4M.oz. Jewelry posted a 5.1% gain, a substantial rise since 2003, due to strong global GDP growth, with emerging markets continuing their industrialized applications.

 

Investment Outlook 2016:

 As with gold and other precious metals, silver's investment demand is increasing in relationship to gold, tracked by the Gold/Silver Ratio. In the fall of 2008, as Mr. Obama was elected the ratio was around 85:1, or you could buy 85 ozs. of silver to one ounce of Gold. As global economies grow in population, income and technolgy, so does their appetite for investment in silver as a storage of wealth.

 The historical ratio was 15:1, in 1980, when silver hit a high of $50 per ounce and gold traded near $800. In April 2011, silver made a high above $50, and that ratio was 30:1, or 30 ounces of silver at $50, bought 1 ounce of gold, which was in the $1500 range

 Many believe gold will trade at $1800, perhaps as high as $2000, due to central banks easy monetary policies with their expanding globalized industrial demand, given current supplies and production.