Silver is used widely throughout many industrial applications. According to Statista the global demand for silver in 2020 was 486.8 million oz, which is 54 percent of the annual total demand. SilverCoins.com does a good job of listing 101 uses of silver. The uses range from medical applications to electronics and technology to energy and science to home uses such as appliances.
The reason for the wide industrial application of silver is because it has the highest electrical and thermal conductivity and highest reflectivity of any metal. So, for industrial applications of tomorrow such as solar energy, electric vehicles, and virtually every electronic device, silver is required.
The reason for the wide medical application of silver is because it has antimicrobial and non-toxic properties. These properties also allow it to be used for water purification applications.
In short, silver has a wide range of applications across various industries. Silver is used in over 30,000 applications in thousands of industries. This is likely the reason why Warren Buffet purchased 3,500 tons of silver in 1997. That is, silver meets Buffet’s criteria of having a tangible and recognizable value.
Here is the Question
With this large demand for silver, what will this do for the price of silver? This is an especially important question in light of the rise in the Consumer Price Index, which reached 7.5% over the last 12 months, according to the Bureau of Labor Statistics. With the rise of prices, which we have not seen this high in over 40 years, what will this create in terms of the price of silver. In other words, if consumer prices are going up at a rate of 7.5 percent, will not the price of silver also go up? If it does, what demand will this place on silver?
Many industries analysts are predicting that 2022 will a good for the silver investor. For example, In MarketWatch.com Edmund Moy, former director of the US mint states, “A compelling argument can be made that 2022 will be a good year for silver.”
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The above represents the opinion of Steve Sands, not only in terms of what each author has stated, but also his and based on the time of writing. Mr. Sands’ opinions are his own and are not a recommendation or an offer to buy or sell securities, commodities and/or cryptocurrencies. As trading and investing in any financial market may involve serious risk of loss, Mr. Sands recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and always do your own due diligence and research when making any kind of a transaction with financial ramifications. Although Mr. Sands has an MBA with a concentration in finance, he is not a Registered Securities Advisor; therefore, Mr. Sands’ opinions and analysis on the markets, including stocks, commodities and cryptocurrencies are his own and cannot and should not be construed as a solicitation to buy or sell.