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Silver Price Looking Bright & Shiny!
Over the past 10 years the supply through production and scrap of silver has increase by 26 percent, the demand has expanded by only 10%. But a good percentage of this production is irrecoverable through photographic paper and other industrial use.
Although over the past ten years the supply through production and scrap of silver has increase by 26 percent, the demand has expanded by only 10 percent. But a good percentage of this production is irrecoverable through photographic paper and other industrial use.
Yet silver bullion inventories have fallen dramatically while silver investments are increasing steadily with a consequent silver price now looking bright as reflected in the steadily rising silver price.
Production will have to hurry to keep up with the increased demand
And another thing. It has been said by some academics and economists that silver is less valuable than gold, because it is bulkier than an equal value of gold and therefore costs more to handle and ship, making it less valuable than gold.
This is a fallacy of course
As Jason Hommel of miningpedia.com correctly pointed out:
"Most of the cost to ship silver and gold, about 80% of the cost, is for the insurance, to insure against the loss of theft of it. And here's how it breaks down, as follows:
To ship 100 oz. gold, requires 4 packages, because you can only insure so much at one time, not more than $25,000 worth. $45 each package.
Total cost to ship 100 oz. of gold = $45 x 4 = $180
To compare, it costs $20 to ship 100 oz. silver; $8 for the one box, and $12 for the insurance. Insurance is much less, due to the lower value.
Gold is 9 times as expensive as silver to ship, on an ounce per ounce basis at current prices, and more inconvenient, due to having to break down the packaging into 4 boxes."
So The cost if shipping for silver is not as much as some would have you believe. In addition silver is used mostly in industry, photography and even food! It possesses some excellent and much demanded qualities:
Silver is an excellent reflector. Silver film is used on the backs of mirrors including those used in telescopes, microscopes, spacecraft and solar panels, as well as bathrooms!
Silver is an excellent conductor of heat Those silver ceramic lines fired into your car's rear window keep the window clear of frost and ice.
Silver is one of the best conductors of electricity. It is the metal of choice for switch contacts because it does not corrode.
Silver kills bacteria! Silver chemically affects the cell membranes of bacteria, causing them to break down.
And of course, silver captures images! Silver salts are the basic image capture and forming materials in photography. Every picture of your sweet little darling contains silver, as well as medical/dental x-rays and your favorite movie.
And don't forget the silver in your jewellery or traditional tableware. It's a favorite medium because it is soft and malleable, and can be shaped into any form. Silver has been used in cherished heirlooms and gifts for centuries.
Yes, the price of silver is indeed looking bright and shiny!