Silver is not gaining momentum, surely not after crashing from $50 per ounce to $32-36 per ounce. Things are not hunky-dory for the commodity, but according to experts, investors should stop greying their hair over the volatility of silver as even today, the precious metal is a good investment due to its extensive use in the industrial arena.
It is estimated that half of the silver demand comes from industries that need it during various engineering applications and medicinal products. Silver enjoys quite a few USP’s; its ability as the best conductor of electricity, as one of the better transfer agents and reflector of light. It also is an amazing lubricant and adaptable catalyst. Although silver is being cast out of its traditional roles, its industrial uses will never exist.
Solar power
The solar industry is one of the major bidders for silver as the industry sees potential expansive growth in the renewable energy industry. A whale of a growth silver is experiencing over the last decade has the sector soar from 2 million ounces to 50 million ounces in 2010.
The year 2011-2012 is expected to see a demand of nearly 70 million ounces, especially from countries like China and India. China’s solar industry growth has been evolving 100%, and even India plans to increase its solar output to 20 gigawatts by 2020. China and the US plan to expand their current capacity to 30 gigawatts by 2020. Moreover, the global capacity for solar energy will multiply 40 times, especially after Japan’s tsunami landed it on the brink of a nuclear disaster. The demand for renewable energy sources, especially solar, has increased, fueling the demand for silver.
Medicine Industry:
Silver has always been in great demand in the medical industry, where it is expected to supply 100 million ounces by 2020. Silver-based cleaners and bandages, pacemakers, catheters, valves, feeding tubes are being increasingly used worldwide. Silver is also an antibacterial and antimicrobial agent used to reduce body odour and bacterial infection in soldiers and medical faculty clothing.