the case for Silver

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investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
the case for Silver

#3. Industrial Demand
Unlike gold, silver is predominantly used by industry today. So rather than offering deflation protection (as gold most recently did after the collapse of Lehman Bros.), silver is strictly inflation-friendly, with a number of fast-growing uses in both developed and emerging economies making it look very growth-friendly, too. Excluding silver investing demand, London's VM Group analysts now forecast an additional 350 million ounces of annual silver demand by 2020 thanks to:

  • RFID tags for stock control and ID cards are "taking over from bar codes";
  • Solar panels – forecast to grow by 20-40 times in 10 years;
  • Wood preservatives to replace arsenic;
  • Wound care & other medical use, food hygiene, and anti-odor textiles – because silver, a biocide, inhibits bacteria.

 

This growth might soon eat itself, of course, if industrial demand forces silver prices sharply higher. But VM's forecast compares with total industrial demand of 450 million ounces in 2008, according to the mining-backed Silver Institute. Meaning the case for silver doesn't rest solely on monetary chaos.

http://www.financialsense.com/fsu/editorials/ash/2010/0325.html

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Re: the case for Silver

...this (among other reasons) is why I am now buying Ag exclusively when I make my (occasional, small, but ongoing) PM purchases.

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