| So why should silver be a great investment in 2007? | | | | novel silver recovery methods. |
| Silver costs less than other precious metals. It can | | | | (These would in turn indicate some of the best new |
| tarnish and corrode. But because of its properties | | | | investments for 2007 , 2008 and beyond.) |
| appearance, hardness, durability and scarcity it has | | | | Also look out for news of serious delays at silver |
| been a valued trade item for thousands of years. | | | | refining sites,or mining disasters that again would tend |
| Traditionally in unsettled times, investors unload | | | | to shoot silver prices upwards. |
| stocks,shares and paper currency and buy into | | | | Less Availability |
| commodities which hold real value. What factors then | | | | Because nearly all the world's silver output is being |
| particuliarly favour a rise in silver prices now? | | | | swallowed or or stored by huge financial institutions , |
| Increased Demand | | | | there is less and less left available for private |
| Silver has become a vital important metal in | | | | investment. This will drive prices sky high as |
| manufacturing industry. While there is less call for | | | | currencies dive and people lose faith in currencies no |
| silver jewellery and ornaments and use (as a silver | | | | longer backed by precious metals. |
| salt) in photographic film, there is far more demand in | | | | Look at The Trend |
| electronics, and for coins and medals. Unlike gold, | | | | Silver prices tend to shadow gold, the prices usually |
| considerable quantities of silver is lost during and after | | | | fluctuating over 22 year peaks. On this basis silver as |
| use and cannot be reclaimed. | | | | not peaked yet. While gold has gone up about 26% |
| Additionally in industry, silver is generally used in | | | | over each of the last five years, silver prices over |
| relatively small quantities - as in reliable non corroding | | | | the same periods have achieved better annual gains, |
| contacts, and circuit breakers - so a price rise | | | | averaging 36%. Silver is still below its previous 1984 |
| wouldn't much alter industrial processing costs. | | | | peak of over $48/oz! As gold rockets, silver prices |
| Furthermore, there is no indication of this increasing | | | | look relatively more attractive, and again up go silver |
| industrial need for silver being cut. Silver usages as | | | | prices as investors buy in. |
| varied as catalysts, water purification, solar | | | | It looks as if silver has become massively |
| cells,motor controls and minature batteries continues | | | | undervalued and the combination of uncertainty |
| to climb. | | | | increasing demand, price wars and dwindling silver |
| Increased Competition | | | | availability could push silver prices up to $17.38/oz. |
| Every developing nation including the two main | | | | Also, many experienced silver traders now seem to |
| industrial giants, China and the US are going to need | | | | think silver has the potential to go much higher. |
| more and more silver.Already they cannot get | | | | Trading In Silver |
| enough. Silver reclaimed from disappearing scrap or | | | | The most reliable -and most physically least |
| photographic waste can't begin to meet this shortfall,, | | | | convenient method-of holding sterling silver, is as |
| so they will be competing with each other - and the | | | | silver bullion (coins and bars of sterling silver of |
| rest of the world - for new silver. Not just for | | | | certified purity like the American Silver Eagle), |
| immediate use but to stockpile. | | | | followed by easier but potentially more risky silver |
| Shrinking Supplies. | | | | 'paper trading' - in approximate order, you have silver |
| There are very few pure silver mines. About | | | | certificates, exchange traded funds (ETFs), shares in |
| three-quarters of all new silver appears as a by | | | | silver mining companies, or derivatives like futures |
| product from lead , zinc and copper mines. This | | | | contracts and spread betting on the future price of |
| means that a sudden rise in silver price cannot not | | | | silver. |
| lead to extra output from these mines. However a | | | | While no investment is totally free of risk, putting |
| price hike may push companies into carrying out new | | | | some of your reserve investment into silver now as |
| exploration, locating new lodes of silver-bearing | | | | it surfs skywards does look a very attractive option. |
| ores,re opening old mines, and more efficient and | | | | |