Everyone wants the most bang for their buck. Finding ways to make your money work for you ends up being profitable and beneficial to you in the long run. Unfortunately, the stock market is a wily creature and there are no sure bets when investing in stocks. In recent years, silver has grown in demand and worth but its selling price has not reflected that… yet. Included here are a few reasons you should invest in this precious metal before prices rise.
The demand for silver is beginning to overcome the supply. Silver is a necessity in electrical, cell phone and computer usage. The greatest area of growth, however, has occurred in the industry of solar power. Solar panel industries have increased their need of silver from one million ounces back in 2000 to a whopping 50 million ounces in 2013. This equals about 5 percent of the world supply and demand is still increasing.
China Reserves are Decreasing
China’s reserve of silver is quickly evaporating. Silver reserves in China have fallen nearly 90 percent since 2013. While China has been a large producer of silver they are also the largest consumer, meaning they will be purchasing from the global market soon. This will cause the price of silver to rise exponentially.
In the warmer summer months the price of precious metals tends to fall or become stagnant. Around September, the price of silver begins to increase and rises over the course of the Fall. Silver averages a gain of 2 percent in September, and 5 percent by November.
Global Supply Decreasing
Shortages in the global supply of silver are beginning to increase which could cause prices to rise in the future. Roughly 80 percent of silver is produced by mining with the remaining 20 percent being reused from scrap or found as a byproduct in zinc or lead mining. Because of the low cost of silver, mines are not receiving enough payment to make production feasible and exploration for new veins is not as prevalent.
It is glaringly apparent that silver is widely used in the electronic industry, but recently it has been discovered useful in many more ways. It is now being regaled for its ability to combat odors, bacteria, fungi and infection. There are also new discoveries pointing to the fact that silver is becoming the most light-reflective window coating on the market.
While some believe silver is gearing up for a huge price jump, others believe the price could just as easily remain where it is or fall. The price of silver has been artificially depressed for many years and, with the advent of new technologies requiring its use, it is likely the price will rise.