Precious metals especially silver and gold are highly sought after. Whenever there is a currency downfall, the prices of silver and gold always soar. It is a perfect tool to protect an investor's holdings against inflation and a devalued currency. The increase of fiat currency into the markets is devaluing the dollar and every year billions of dollars are being pumped into the system. When this kind of environment happens, investors look to shift their money into a safe holding place. Silver is the perfect place to do that.
Globally, over the past few years during and after the recession, silver is still trading bullish in the stock and securities exchange thus making its demand and value increase steadily. A person who follows the stock markets consistently will know that the value of silver will not drop anytime in the future.
In the U.S, sales of the Silver Eagle bullion coins increased by 13.3% in December 2011 to 2,009,000 compared to 2010's sales of 1,772,000. For all of 2011, total Silver Eagle sales arose to at an all-time record high of 39,868,500 ounces, up 15.0% from the prior year's (2009) total of 34,662,500 ounces.
Silver is in high demand not only as a commodity, but also because of its many industrial uses. Silver is widely known as an industrial metal and is the best, most profitable choice in numerous industrial applications. I will go further and add that silver demand isn't going to decrease in the near future since it serves a wide range of manufacturing companies all over the world.
Manufacturing Applications Associated to the Increased Demand of Silver
As I stated above, there are industrial uses in different fields that have led to the increased demand of silver, these companies use silver for purposes like:
• Manufacturing of solar energy
• Bottled Water Purification
• Milk processing
• Rechargeable Solar Batteries
• Replacing Platinum Catalysts with less expensive Silver Catalysts
Based on these and other facts a large number of investors, who have come to terms with these findings, have shifted their investment portfolio from other bases to silver. The reason for this is because they have seen that the old adage of "when demand is high, so does the cost go higher" and are literary reaping massive benefits from their silver investments.
The same manufacturing companies are also contributing to the higher demand of silver since they're buying of big chunks of silver and stocking these chunks thus creating a shortage and ensuring that the prices soar. By the end of 2011, silver demand rose so high that an ounce of silver was trading for $30 in December. 5 years prior, the price of silver was approximately $12 an ounce.
Extensive Outlook Term for Silver
Looking at the future of the price of silver, it looks immensely bullish for silver, and investors should earn enormous rewards from this metal. Some analysts and investors see silver being the investment of the decade. If you look at all things that we are using nowadays, almost all them are somehow linked to silver, this point should confirm the reason why silver is the metal to invest in since its demand is continuing to soar!
By Emilio G Boy
Emilio Boy is a member of ISN (International Silver Network). ISN is the newest network marketing company focused on the precious metals market. Learn more about becoming a member of ISN and owning your own online coin store by clicking HERE.
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