The silver bullion price has been notoriously volatile as it can fluctuate between industrial and store of value demands. Silver bullion prices often tracks the gold prices due to store of value demands but the ratio can vary. The average gold/silver ratio during the 20th century was 1:47.
The fastest growing and largest factor is silver using in industrial applications. Silver is a very good conductor of electricity which make it extremely desirable to the industry of consumer electronics. Silver is perfect for use for manufacturing of conductors and contacts. The worldwide explosive growth in tablet computers, smartphones and other portable devices is driving silver bullion prices higher and higher.
Quick fact.
- Silver is both an industrial and precious metal.
- Military uses are massive in Silver – all advanced weapons – use tons of Silver as do the ammo for missiles.
- Decades ago, people used to put a silver coin in their rain barrel to keep the water from going stagnant.
- Ancient Romans would keep a silver coin in milk to make it last.
An additional a very big consumer of silver bullion is the jewelry business. The skyrocketing cost of gold has helped to reinvigorate using of this traditional preferred precious metal. Although this market saw a brief decline in usage throughout the high current recession, it has steadily rise within the period since as developing nations and emerging markets have demonstrated an increasing appetite for the silver bullion.
One of the oldest uses of silver and nonetheless one of the most active is the production of silver coins. Actually, the first use of silver as money dates back to 600BC. Even the U.S. used silver as a base metal for coins until 1964 when the last dimes and quarters were replaced by coins made from much less expensive alloys. While many countries have begun to move away from the use of silver in their coins due to rising silver bullion prices, the production of investment grade .999 fine silver coins has actually led to an overall increase in silver consumption in recent years.
Quick fact.
- Metals had a different value depending on the region involved. For Viking silver and gold, we’re nearly equally valuable.
- A common misconception is that Lydians first minted coins. The truth is that the Ionians were the first, a hundred years earlier and from the same material.
- Mexico has circulating coins with sterling silver centers and bronze rims but they’re hardly seen in circulation.
- Perú have the biggest silver reserves in the world.
Finally, using silver as an investment has helped to drive silver bullion prices to the highest level in last years. While investing in commodities and precious metals is certainly not a new concept, the development of silver ETFs and funds has created a noticeable impact in the demand picture for silver bullion. Numerous of these publicly traded funds like the iShares Silver Trust (SLV) are backed by holdings of physical silver. Every time an investor purchases a share, the fund is required to acquire an ounce with the physical silver. When demand from traders and investors increases, it drives silver bullion prices per ounce higher by reducing the quantity of silver supply accessible to the market. These modern ownership options get rid of some of the conventional hassles and expenses involved with owning physical silver such as storage and security. The development of these new funds has produced it simpler for small private investors to participate in the silver market without getting to buy silver coins, rounds or bars.
Quick fact.
- Milk Spots are a means of identifying genuine silver coins.
- They’re exporting fake 1oz Britannias, 1oz Kangaroos and 1oz US Silver Eagles etc for just a few dollars each via AliExpress, directly from China… ans they some are “no magnetic”.
- Rounds have lower premiums.