Silver is the cheaper and more plentiful cousin of gold. Its used in a greater variety of ways than gold making the argument that its demand out-strips gold. Silver’s gain for this year out-strips the yellow metal by a margin greater than 2 to 1. The down side is silvers volatility in this current market.
Silvers usages are from jewelry, silverware, biocides, solar panels, Electronics, to any other number of products. The last three items are where the major growth in silver use is taking place. In the last decade silver use in electronics is up 199%, use in solar panels is up 640% & use in biocides is up over 600% since 2002.
Less than half of the silver in electronics is recovered and biocides is near zero recyclable. The cycle of silver in solar panels is 30 plus years. All of these are adding pressures on the demand of silver. With almost 20% of current usage in the market coming from recycled silver and continued increased demand will widen the gap as mining alone can’t keep up.
Continuing to acquire silver on retractions as we have today is a great way to keep updating your Tangible Asset Portfolio. No matter what direction silver goes your long-term position will be determined by what you do today when the opportunity presents to acquire on a retraction.
Read further: The Daily Reckoning – Are We Running Out of Silver?