Goldknox News

Investing in silver is a worthwhile investment as industry continues to new find ways in which to use the precious metal, according to a leading bullion trader.

Dillon Gage Metals says that the versatile metal has a place in many emerging technologies, as well as maintaining its historical and traditional uses that will inflate its value in the years to come.

“Silver is much more than jewellery and sterling tableware,” Terry Hanlon, president of Dillon Gage Metals tells The Asset. “It’s not just for wedding presents and birthday gifts but has widespread uses throughout the economy.”

Studies published by The Silver Institute in April for example, suggest that world industrial demand for silver could reach a record 665.9 million ounces in 2015, compared to 487.4 million in 2010, driven by a range of sectors.

Electrics, electrical consumer goods and cell phones all have a major dependency on silver. These industries are only thought to grow further, not falter, the Silver Institute’s report concludes.

“Silver is hardly just ornamental,” says Hanlon. “It has existing and growing new uses that suggest prices can strengthen over the next few years.”

Silver is so valued in the electronics industry because of the various ways in which it can be used, owing to its physical and chemical properties.

It is malleable, meaning it can be turned into wires or threads, and is also a great electrical and thermal conductor. Its anti-bacterial properties also make it ideal for use in medical or purification applications, reports Feed The Grid.

However, no matter what a bright future silver holds, Hanlon advises: “Like any investment, you should research who you purchase from.”

Investing in silver has been lauded by two experts as a viable alternative to buying gold.

Those thinking of investing in the commodity won’t be sorry for considering the slightly less obvious choice, as silver is attracting a lot of attention at the moment, according to Ladawan Charoen-Rajapark, managing director of Asset Plus Fund Management.

Speaking to The Nation, Ms Charoen-Rajapark pointed out that not only does silver have “low correlation with other assets such as stocks and bonds”, demand for the precious metal is also on the rise.

The majority of demand in 2010 came from industry, whereas the jewellery and silverware markets accounted for just 25 per cent combined. Supply has been met predominantly from mines in the Southern Hemisphere, while a further 20 per cent was derived from recycling scrap silver.

Essentially, forex-rateit.com says, the metal is in short supply, which will push the price up. Speaking to the website, “industry veteran”, Eric Sprott said that “gold [was] the investment of the last decade and silver the investment of this decade.”

The growing demand, for use in electronics, on mirrors, medical devices and in solar panels, in conjunction with future shortages in supply have made many experts believe the price of silver could eventually hit a ratio of 1:15 against gold.

With this in mind, it won’t be long before silver is no longer thought of as “the poor man’s gold.”