Shortages Of Silver Causing Silver Prices To Skyrocket Taking A Leadership Role

June 19, 2011 - PRLog -- Silver prices have been on fire over the last three years - substantially outperforming its spotlight-grabbing cousin, gold. Simply because we think this bull run is far from over, we advise investors to usually maintain investments in the precious metals markets. Even in the event you have not yet participated in the run-up of gold and silver, we are glad you’re ready to take a look at the investment potential of silver. CLICK HERE to Check Out Investing In Gold, Selling Gold, Trade Gold, Invest In Gold Now! http://www.silver-dollar-values.com/Selling-Gold/

The query each and every investor faces inside a bull marketplace is: Do I purchase now, anticipating prices will continue higher - and opportunity getting clobbered if a correction arrives? Or do I watch for a pullback and possibly miss out on large gains? There is risk both ways.

Our goal would be to recommend various methods you can make investments in silver, while underscoring the significance of patience and self-discipline. Traders must remain patient to steer clear of chasing silver, overpaying, and draining their money. Instead, we suggest which you use temporary price declines to steadily accumulate the best silver stocks and your preferred form of bullion.

Searching back again after this bull market has finally finished its course, we think gold and silver will have amply rewarded those that purchased intelligent, had meaningful exposure, and stayed with the program.

There is ample information on the silver market to think about, but you will find two specific problems concerning supply and demand that are crucial to understand.

The first is industrial use. Need from a number of industries that use silver has been flat or falling. Home demand for silver like cutlery, flatware, and candlesticks hasn’t risen in 10 years. Jewelry fabrication is up but a blip. With the shift to digital photography and picture storing, use in photographic film processing continues to fall. And yet, complete demand from industrial users retains climbing.

So what is driving industrial demand? The uses for silver are growing every day. Since 1999, consumption in electronics has increased 120%. Silver use in photovoltaic panels began in 2000, and use is up 640% since. Silver was first utilized in biocides, antibacterial agents, in 2002 and, while a small percentage of complete silver use, it's grown six-fold in the last few years. Go to http://silver-dollar-values.com for a lot more silver coins and gold coins buying tips and ideas.

The point is the fact that not only are the number of uses for silver expanding, the need inside each of those applications is increasing also. This really is important to keep in mind because, traditionally, the industrial component of silver tends to keep the price very soft in a bad economic climate - and experts and analysts are convinced we are on the cusp of the Greater Depression.

Nevertheless, these increasing sources of demand for silver are now more likely to maintain flooring beneath the price in the long term. In fact, the Silver Institute forecasts that complete industrial use of silver will rise by 36% over the next 5 years, to 666 million troy ounces per year. That is a lot of silver, meaning this part of demand, that is roughly 60% of all fabrication, isn’t letting up anytime quickly.

The next issue is mine supply. Silver mine production continues to be increasing over the previous decade, largely due to rising prices, allowing businesses to ramp up production and carry more metal to the market. Actually, global mine manufacturing is up 33% since 1999. Meanwhile, total silver demand is also rising.

So what is the problem? Mine manufacturing can't keep up with need for silver. In spite of miners digging up much more silver, manufacturing by itself cannot meet international need, and the gap must be filled up by scrap silver coming to market.

However, there’s a catch with scrap. While scrap metal comprises about 20% of silver’s complete supply, many of these new applications are tough to reclaim. Some apps contain such small quantities that they are uneconomic to recapture, like many biocidal and nanotechnology apps. With others it’ll be a long wait. Solar panels, for example, have a 20- to 30-year life. Still others are waiting on more efficient recovery programs; much more than fifty percent of all silver in cell phones, TVs, computer systems along with other electronics, for instance, still ends up in landfills. In other words, a growing part of the silver that is consumed won’t be returning to the market very quickly. As you can readily ascertain, silver is in short supply, with demands increasing, and mining not keeping up with demand. Now is a great time to invest in silver. Buy silver for your asset protection plan during these times of crisis. Visit http://silver-dollar-values.com for more silver coins and gold coins tips and ideas.

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