利用者:TindallRaposa259
Silver prices have been steadily increasing in the last few years. The cost of silver has grown about 84% this year after which up another 20% in 2011. Based on analysts, the need for gold and silver continues to rise in the future. If you are planning on investing on coins, then you must do it now before the prices get too high. The longer waiting, the smaller the profits you receive from purchasing silver. If you do not believe that the cost of silver will only continue to increase in the future, read this list of a few of the explanations why the price of silver is continuously rising.
Reasons Why Silver Costs are Rising
For many years, central banks happen to be selling their reserves of silver in order to meet excess demand. This has kept silver prices low for many years but it also made mining unprofitable. As a result, there is now lack of the mined capacity of silver developing over the next 2 to 4 years.
The majority of the mined silver is consumed for industrial purposes. Therefore, most of the mined silver is consumed quickly instead of being stored. Silver is really a previous metal which has a store value quality similar to gold, but it's used as an industrial metal. This gives it a useful value in growing industries for example chemicals, computers, and cell phones.
Since World War II, the United States government has sold over 5 billion ounces of the rare metal. The U.S. government currently has no reported silver kept in storage.
The above-ground available stores of gold have by 600% since 1980, as the above-ground available stores of silver have decreased by 90% since 1980.
Silver costs are also rising because starting and operating a mine costs lots of money. A significant silver mine needs requires about ten million dollars (in some instances it might need 100 million dollars) in capital to get started. It takes about Three to five years for a single silver mine to produce a significant amount of silver.
Most of the mined silver didn't originate from silver mines. It is found while mining for other minerals like zinc, lead, copper, and gold. Therefore, silver isn't the focus of new investments within the mining sector. Only 30% of mined silver comes from silver mines. They are not many because there are few places that can sustain silver mining.
Silver has countless industrial uses in the current modern economy. It's used in water filtration, wound care, health care, solar power, mirrored glass, DVDs, mobile phones, smart phones, tablet computers, and computers. It is also used like a catalyst for chemical reactions to be able to produce products such as plastics.
Silver may be the preferred metal through the average investor once the prices of gold tend to be more than $1000 per ounce. When gold prices increase, silver becomes a good substitute for investment for gold because of its lower cost and it is similar qualities.