PERSONAL FINANCE & LIFESTYLE BUSINESS

Some of many uses for silver include; Currency, Jewelry and silverware, Dentistry, Photography and electronics, Mirrors and optics, Other industrial and commercial applications, Medical, and Clothing.

All of these uses for silver are in forms of consumption, but the factors influencing the price are going to come from more on the side of speculation rather than demand. The silver market compared to gold has 18 times less turnover money, with an annual physical demand estimated around $15.2 billion.

With such a small market, it would be very possible for large traders or investors to influence the price very easily.

But I believe that there is a rise in industrial, commercial and consumer demand rise for silver. To name a few, in our currently economic volatility, a commodity like silver can be a great hedge against inflation and economic uncertainty. In 1980 silver toped near $50 an oz, in 2011 value of dollars that’s over $137. The current price of silver right now is around $35. Also the historical charts look interesting as the pattern in both inflation and silver price seem to be on a similar draw. As well as the economic indicators.

So as the inflation will start to heard high north in the next couple of years, these type of commodities are going to be the best inflation hedge. We can already see gold the more popular choice for now, which hit record face value levels. But that too will go near it inflation adjusted high level from the 80’s to about and around 2100<>.


World Silver Supply and Demand
(in millions of ounces)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Supply
Mine Production 591.0 606.2 593.9 596.6 613.0 636.8 640.9 664.4 684.7 709.6
Net Government Sales 60.3 63.0 59.2 88.7 61.9 65.9 78.2 42.5 27.6 13.7
Old Silver Scrap 180.7 182.7 187.5 183.9 183.7 186.0 188.0 181.8 176.0 165.7
Producer Hedging 18.9 9.6 27.6
Implied Net Disinvestment 87.1 12.6
Total Supply 919.1 870.9 853.1 869.3 868.2 916.3 907.2 888.7 888.3 889.0
Demand
Fabrication
Industrial Applications 374.2 335.6 340.1 350.8 367.6 407.0 427.0 456.1 443.4 352.2
Photography 218.3 213.1 204.3 192.9 178.8 160.3 142.4 124.8 104.9 82.9
Jewelry 170.6 174.3 168.9 179.2 174.8 173.8 166.3 163.5 158.3 156.6
Silverware 96.4 106.1 83.5 83.9 67.2 67.5 61.0 58.4 56.9 59.5
Coins & Medals 32.1 30.5 31.6 35.7 42.4 40.0 39.8 39.7 65.2 78.7
Total Fabrication 891.7 859.4 828.3 842.4 830.8 848.7 836.4 842.5 828.6 729.8
Producer De-Hedging 27.4 24.8 20.9 6.8 24.2 11.6 22.3
Implied Net Investment 11.4 6.0 37.4 67.6 64.0 22.0 48.2 136.9
Total Demand 919.1 870.9 853.1 869.3 868.2 916.3 907.2 888.7 888.3 889.0
Silver Price
(London US$/oz)
4.953 4.370 4.599 4.879 6.658 7.312 11.549 13.384 14.989 14.674

Top 20 Silver Producing Countries in 2009
(millions of ounces)
1. Peru 123.9
2. Mexico 104.7
3. China 89.1
4. Australia 52.6
5. Bolivia 42.6
6. Russia 42.2
7. Chile 41.8
8. United States 39.8
9. Poland 39.2
10. Kazakhstan 21.7
11. Canada 19.6
12. Argentina 17.1
13. Turkey 14.0
14. Sweden 8.7
15. Morocco 8.3
16. Indonesia 7.7
17. India 7.3
18. Guatemala 4.2
19. Iran 3.5
20. South Africa 2.6
NO COMMENTS
Post a comment