Silver Industry

A quick look at the silver industry reveals yet another justification for investing in advance of the coming move in silver prices.

Unfortunately, many fail to understand silver's industrial applications because, while silver is used in many finished products, it is generally used in very small quantities. And the knowledge that there is a small amount of silver in my cell phone, for example, does not necessarily translate well, in the minds of many, to the masses of cell phones that are produced each year.

Also, the use of small quantities at low prices creates an inelastic demand character that may likely be the force that moves price the most.

Can you think of another easily-held commodity as inexpensive, as useful, and yet as scarce as silver?

Uses for Silver

The industrial demand for silver alone is almost certainly enough of an argument for holding silver for the long run.

For a comprehensive list of the industrial applications of silver, click here.

Low Prices

In many ways, at current prices, physically held silver is a steal.

It sounds almost too good to be true that you can walk out of a local coin shop with pure silver at such incredibly low prices compared to any other metal or commodity.

Read more about why silver prices have historically been so low here.

Without the silver industry, most of the production lines responsible for many of the necessities of modern life would simply shut down. Cell phones, computers, keyboards, and automobile components are just a few of the familiar items we use that depend on silver.

Make the comparison with oil. We read about the surging cost of oil and the impact it has on the price of almost everything. Yet silver, because it is used in small quantities and is a key component, has inelastic demand. It will be bought (and likely hoarded) all the way up the price curve.

There is much evidence that the combination of industrial necessity, low prices, and limited supply with cause a major shift in silver prices in the near future. Here are just a few considerations, each of which is covered in greater detail elsewhere on this site:

I like to visit the palladium or platinum story from time to time for a fair comparison.



Click here for the palladium story.

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