Gold has been for many years considered as a leader among precious metals, mainly at the expense of investment silver which was seen by the public in the second half of the 20th century predominantly as an industrial metal. But the situation is slowly changing and silver begins to be perceived as real investments with a great grow potential.
The first silver mines were discovered in the 4th millennium BC in Asia Minor and on the Aegean islands.
To this day about 1.25 million tons of silver was extracted all over the world and its global resources are falling rapidly. Silver was exported from Mexico to Europe in the 16th century. In Peru and Bolivia was extracted about 100 000 tons of silver from half of the 16th century to the Second World War. Bearing Cerro de Pasco was discovered in central Peru in 1630.
Silver (in latin Argentum - clear) can be found in nature in several forms. Pure silver is very rare, so silver is usually in the form of compounds and in many cases, it only accompanies ore vein of another metal, such as lead, nickel, zinc or copper. Silver is in nature most often as silver sulphide. Pure silver can be found in nature more rarely than gold. It appears in the form of fine crystalline threads, fluff or small lumps.
Silver is extracted primarily during the extraction of copper, lead, zinc and nickel. The most used method for purifying of silver is electrolysis. The world largest silver producers are Mexico, Canada, Peru, Australia and USA. Gold and silver have been for millennia common currency.
Advantages and use of the silver
Investment silver together with investment gold and platinum have been regarded as a store of value, especially in times of crisis, high inflation etc. Investors use it as an alternative tool to bonds, securities and shares because of its low correlation with equity markets. Silver price is understated nowadays.
Silver has wide range of industrial use. It’s main reason against gold, which is used mainly in the goldsmith to make jewelry. Silver is practically used mainly for its unique physical properties – excellent electrical and thermal conductivity, good chemical stability and resistance to environmental stress. Consumption of silver in the industry, for making jewelry, coins consumes about 95% of the annual production. Silver resources were estimated at 2 billion ounces at the end of 20th century, but the amount of silver is estimated at 200 million ounces nowadays. It might lead to a dramatic price increase in the future.
The rapidly growing demand for silver in developing countries like India or China affects also the prices of investment silver.
Current economic situation when we can expect recession or another crisis will have probably big impact on the price of silver and other precious metals, so the investment in physical silver can be a very good strategy of many investors.
The concept of investment silver is a specific form of silver that is used especially for investment purposes. We mean silver coins, ingots and bricks with high purity and defined weight.
Detail information about silver coins
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