|
Free
Membership
Forum
|
Join
Today
100 % free membership, meet new friends , chat, talk golf or
trade recipes. |
|
Are
you into fine art?
For some of
the best artists on the
internet
click
here |
|
|
Buying Silver
by gold price
On the subject of buy silver, it seems that silver investment
has a long history as a safe investment and this does not look
like changing any time soon.
The primary use for silver is industrial with over 40 percent of
all silver used in industry, over 20 percent used in photography
and only around 28 percent used in jewelry. The balance is split
equally between investment and the purchase of silver coins and
bars.
The industrial demand is mainly because of silvers unique
properties, unavailable with other metals. These include:
The highest thermal conductivity of all metals
The highest electrical conductivity of all metals
The highest reflectivity of all metals
Unique chemical and anti-bacterial properties finding increasing
applications in consumer products, medicines, and medical
products
Industrial silver demand is relatively insensitive to price due
to silver’s unique properties and also because small amounts
of silver are used in
So this demand is unlikely to diminish particularly as industrial
needs continue to increase.
In the photographic market, despite the increase of digital
photography, the use of silver remains undiminished and silver
photographic paper continues to be used, particularly in China
where the demand for lower total-cost conventional film is still
present.
The jewelery market is very much a one way flow as, for example,
the storage of silver for rural residents of India along with gold
is common and so there is little turn over but a great deal of
hoarding.
Additional to this the world silver stock piles are depleting as
much less than 5 percent of all silver used is returned as scrap
or recycled. Only 30 percent of all silver mined comes from
primary silver mines (mines that produce silver only or as its
main product). Over 70 percent is obtained as a byproduct of other
mining activities. There are currently no new primary silver mines
and if any are discovered, it will take many years to bring them
into production.
Silver scrap has not increased marginally despite the increase of
the average price moving upward. Most of the silver scrap comes
from photographic films and papers, not silverware, or jewelry and
such silver is a very small component of the retail price of
silver anyway so there scrap value is virtually non existent.
As at Sept 2005 the net world inventories were less than 350
million oz. and declining. At that time the price of silver was 7
dollars an ounce giving a value to that inventory of 2.5 billion
dollars. In 19650 the world stockpile was 10 billion oz. At the
end of 2004 it was estimated stock piles had fallen to 419 million
oz (per CPM group). So Us silver inventories have declined by 98
percent from a peak of 5.9 billion in 1942 to 115 million oz in
2004. And to ad salt to the wound, not all of that is
'registered" or available. The US Comex Exchange in New York
holds, at the last count, 106 million oz and only 49 million oz
=of that is categorized as "registered' or available for
delivery.
This, plus the strong demand by investors for silver bullion is
resulting in an overall stronger demand and higher prices. It is
likely that silver will continue to climb in price and, although
groups such as the New York based Comex Exchange may seek to
regular the price by gradual issuing or "registering for
delivery' some of their stock pile, the fact that there is not
enough silver in the world to continue to meet future demands will
be the main force driving that price range.
The bottom line means that, silver production is dropping by
around 5 percent plus per year and less than one percent is
recycled. As with any supply and demand, the less silver there is
in the world available the higher the value of it will be.
Particularly as the necessity of silver in the industrial, medial
and it seems likely this is going to continue.
This is good news for silver investors who buy silver as, with
prudent investing, they are quite likely to enjoy the profitable
fruits of silver investment over the coming years.
|
|
<?php include("inc/right.inc"); ?>;
|
