Silver Investment: Big Fortune Ahead

These days, silver is used in the electrical conductors and contacts, in mirrors as well as chemical reaction catalysis. Apart from that, compounds of silver are also used in the photographic films; whereas diluted silver nitrate and other compounds of silver are put to use as microbiocides and disinfectants.

Silver had also been a part of the monetary system of United States through 1965. However, with silver standard winding up in most parts of the world, silver lost the role of legal tender. By 2009, the demand for silver mainly involved industrial applications, bullion coins, jewelry, as well as exchange-traded items.

With the malleable/ductile nature of silver and its high electrical conductivity its industrial usage has become indispensable.  Its wide usage in things like electronics, batteries, mirrors, photography etc. has been a main reason for the boost in its utility.

However, amidst its industrial usage, investment as well as speculation can’t be forgotten altogether. Like most other commodities, price of this metal is also driven by demand and supply as well as speculation. In comparison to gold, price of silver is very volatile. Such volatility can be attributed to factors like lower liquidity, as well as demand fluctuations in between store of value and industrial uses. At times it might result in wide valuations in market, which create volatility.

Silver usually tracks the price of gold, because of demands related to store of value. However, the ratios usually tend to vary. The gold-silver ratio is analyzed by investors, traders, as well as buyers. As it is, the lower the ratio, the more costly silver is in comparison to gold and vice versa.

In any case, silver is a great investment and given its industrial usage, its demand should not fade in recent times.