Recently there has been much talk about the role of silver in investment and the demand for precious metals. However, what’s more interesting is the technological requirement for silver in various fields.
Silver market today can best be described to what it was 100 years back, when the industrial demand for silver had only just began to burgeon. In the early 1980′s, silver demand was declining as a reaction to the high silver prices and worldwide recession that had set in. Now silver is back in a phase where it has become a great business to be in, at least for the next 50 years.
Today, the industrial necessity of silver is growing significantly and nearly half of the silver that is excavated is used for the said purpose. All sorts of new innovations and technologies have been discovered in the 21st century, resulting in demand outstripping the supply.
The high conductivity of silver make it a highly source-able material in everything from electrical switches to catalysts. These days, the list of uses for silver in the automotive, medicine and solar industry is growing at a rapid rate and everyday seems to generate a new use for silver. An excellent examples are South Korea and China who have witnessed a tremendous growth in silver demand from the electronics and auto industry.
Seeing this enormous demand for industrial silver, it is hard to figure whether silver mines will be able to keep up with the supply. So, after a period of time above-ground investments stocks need to be reallocated for industrial use. In future, as investment demand keeps on coming and going, silver prices will become very volatile.
Image Credit: Rob Lavinsky, iRocks.com