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With so much talk about gold as a valuable investment commodity, we often forget about another precious metal that has proven its worth in the same markets. That metal is silver and the demand for it, as an investment and as an industrial material, is increasing more and more. From jewellery to smartphones, solar panels, solders and more, silver is becoming the rising star of many global markets. Many investors are even adding silver bars and coins to their investment portfolios.
So, just what are the factors causing the renewed interest and increased value of silver With the continued shift towards smaller mobile devices and the growth of smartphones in developing countries, silver is becoming more widely used throughout the electronics industry.
As technology develops and more uses for silver are discovered, more silver will be needed in
the manufacturing process. According to data compiled by GFMS for the Washington-based Silver Institute, almost half of global silver consumption came from uses such as mobile phones, flat-panel TVs, solar panels and alloys and solders in 2016. This number is expected to increase as the need for more advanced electronics are developed, propelling silver demand skywards.
Another factor that is contributing to the increased value of silver is the limited supply and the fact that we could possibly see a silver shortage soon. Above ground silver supplies are expected to plateau and there’s a shortfall of mined silver available. Pit these against the physical demand for silver and it’s possible we’ll see prices begin to skyrocket very soon.
But will these high silver prices remain constant, or will silver become as volatile as gold Historically, silver has always remained a consistently valued precious metal for investors. As demand increases and prices rise, it’s expected to stay that way for the long term with little to no loss.
Are you looking to add silver to your investment portfolio Contact Physical Gold today and let one of our team help you understand why silver could be the next gold.
Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.