Hi,
“The little brother of gold”, known as silver, has traditionally been accessible, useful, and beautiful by comparison to gold. But what’s happening now is bringing silver, as a precious material, front and center as one of the most vital resources usable by the world today, due to the technology demands that are consuming silver at a rate faster than the mines can deliver. In other words, we could face a real shortage of silver, as a result, not of investing, but of technology.
The Unsung Hero of Modern Technology
Contrary to gold, which is mainly applied in jewelry and as an investment, silver has numerous applications in industry. It is the best natural material that can conduct both electricity and heat.
Here’s how silver quietly powers our world:
Solar panels: Every solar panel uses around 15 to 20 grams of silver. As the world rushes to keep up with renewable energy, solar production, and consequently silver consumption, are experiencing a steep rise.
Electric Vehicles: The applications of silver include batteries, wiring, and cutting-edge safety features in electric cars. As electric vehicle sales are peaking, each new vehicle entering the market contributes to an increase in silver consumption.
Electronics: Smartphones, tablet computers, and even medical devices are utilizing silver as a component in their electronics and sensors.
5G & AI Infrastructure: With the growing world of technology, demands for silver keep pace.
These sectors are not acquiring silver to speculate with; they require silver to operate.
Mining Can’t Keep Up
Here’s the catch: the supply of silver mining has been failing to keep pace. Many silver mines are old, and new discoveries are becoming a rare breed indeed. Further, 70% of the world’s silver production comes as a byproduct of mining other raw materials such as copper or zinc. When those markets slow, so will the silver production.
Additionally, the usage by industries continues to rise. The Silver Institute recently announced that the usage by industries reached record levels, with no end in sight to this growth. Such a mismatch between supply and consumption makes silver a potentially valuable resource as an industry material this decade.
Investors Are Taking Notice
Once, investors looked at silver as a cheaper version of gold. However, as the demand for silver in industries continues to escalate, silver is now recognized as a two-in-one asset – a safe haven asset as well as an industrial super performer. It possesses a unique attribute, as its price can appreciate either when the economies are doing well or when economies are facing turbulence.
The Bottom Line
The world is rapidly moving towards electrification and renewable energy, and silver is the unsung driver making all this happen. However, with fewer mine developments and a rapidly increasing utilization rate, we may soon witness a world where silver is not just precious – but rare as well. As a trusted and reputable gold and silver investment company, AU Bullion offers you simple ways to invest in physical silver, whether 1 oz silver Maple leaf coins or 100 oz silver bars, before the industrial world further reduces its availability.
