Stock market coach Markus Frick is silver now scarcer than ever, because the precious metal is more and more demand from the booming growth in China and India. Brian Krzanichs opinions are not widely known. Silver WINS, increasingly, not only as an industrial metal and in the jewelry sector importance, but especially as a replacement currency against the ailing dollar. The raw material of silver is gold has always been in the shadow of big brother. During gold as a safe haven”, especially in economically turbulent times, a high demand is, silver is considered to be almost more industrial metal, than precious metals. Due to its properties, silver is used in many ways in the industry today. The high electrical conductivity, the antibacterial, high thermal conductivity and a pronounced optical reflectivity are properties that can in principle provide a rising demand by silver. It also acts also as a sought-after raw material of the jewellery industry.
Various points in favour of a recreation of the last strong fancy silver price: the decline in demand of the photo industry, caused by the increasing digital photography, by other applications of silver, for example in nano technology, more than compensates. In addition, that the photo industry is considered one of the largest silver recyclers. Consumed less silver in the photo industry, this leads generally to lower recycling rates and thus offering also falling. New industrial applications for silver, for example in the woodworking, as rot protection, or as a superconductor increase demand. Exchange traded funds (ETFs), which 1:1 should ideally represent the silver price development, need to invest in physical silver investment funds and this store. Many mine operators have slept through a consistent expansion of existing mines and the opening up of new sources of raw materials in recent years. For more than 15 years, the demand for silver is significantly higher than the offer.
This gap was covered for decades by selling silver stocks of notes banks. Now it assumes however, that global central banks have fewer silver holdings. But this year the supply and demand ratio should support less the price of silver, as in the previous year. Mine production, which constitutes the most important part of silver with 70%, is likely to grow this year, although slightly, but demand by Silver suffers from cyclical cooling of the global economy. Over half of the silver demand comes from the industry. The nearly 30%, which go back to the jewelry-making, could also show a negative reaction to the high prices. On the other hand, the demand from investors is regained. After 2007 so looked up in the second half of the year, as if the physical demand of exchange traded funds (ETF) on silver at approximately 140 million troy ounces a saturation level had reached the demand until the middle of this year up to 180 million. This corresponds to approximately 20% of the annual silver supply.