Tuesday 7 December 2010

Silver price continues to rise...


Historically, silver has been used in industry, medicine, photography, jewellery and coin manufacture and even in sweet production (In India)

While traditional photography has moved to digital (which doesn’t demand silver) demand from new industries is increasing. New applications, such as laptops and mobile phones also require silver – and once you know that you can start to see why its rising so rapidly.

There are only a few pure silver mines left, with most silver (around 80%) being minded as a byproduct of other base metals, and their reserves are depleting. Since gold has a much higher value, it is often recycled, but silver’s inherent value is much lower so this doesn’t usually happen, which means that in market terms, when its gone, its gone !

At the beginning of this year analysts were estimating silver price to be in the range of $25 to $27.50, but we’ve already seen it rise above that on occasion, so it looks as though it will end up higher than this original estimate.