Why is silver popular now
The internet has changed the way things work in the world, Social media can make or break things even precious metals markets are impervious to social media. A year ago, a social media induced short squeeze of the gaming company impacted the price of silver. Investors who had silver in their portfolios saw the last couple of months as the best time to sell silver bullion. Silver came into the spotlight like never before and people who had never entertained the idea of silver investments became aware of the wisdom of holding this precious metal in their investment portfolio demand came from the unlikeliest kinds of customers.
There are more things driving the newfound interest in silver instead of just some Reddit group’s shenanigans there are other factors that have affected silver.
Why Silver Is Still Trendy
Silver is known for its use in coins, as well as silverware however these account for less than 50% of the silver consumed. Because of its unique properties, silver is considered to be an ideal material for a number of industrial uses.
Silver has excellent electrical and thermal conduction properties. Silver is also very malleable and ductile. It can be drawn into thin wire or flattened into thin sheets. It does not react with oxygen do which makes it resistant to corrosion. These properties make silver excellent for industrial and electrical applications. Furthermore, silver has non-toxic, anti-microbial properties which makes it ideal for use in medicine and other consumer products. With the discovery of nano-silver has seen the use of silver expanding into home appliances.
Compared to other metals silver is easier to get a hold of and cheaper too. This hasn’t always been good as far as how silver is viewed. Who would have thought that when you sell silver bullion it might not end up being sold for a high price but that it could be repurposed into something you use to do hour laundry.
Silver is not just appearing in laundry detergent but cab also be found inside jet engines. Silver has proven to be an important material fof innovative technologies and has appeared in a number of unexpected places.
Here are some more reasons why silver is becoming more popular:
Even before the recent spikes in silver prices, the demand for silver for industrial use has grown. The sudden interest and wide use of silver may not immediately translate into an increase of its market value.
Even before the spike in prices seen in early February, investors have been friendly to silver due to its industrial properties. While this interest in silver might not cause an immediate increase in value, it is likely to show some significant return in the long term. Expectations were that industrial de oçshow in the medium and long-term timeline. Silver has more potential to outperform gold as it is said its industrial demand will rise 9% from 2020.
Silver has a monetary value. It tends to hold its value in the worst of times.
Silver has always been cheaper than gold. To understand why you will need to look at the silver-gold ratio.
The silver-gold ratio tells us how many ounces of silver it takes to buy 1 ounce of gold. In the modern era, the average has been between 40:1 and 50:1. Gold has always been more expensive than silver, but if the ratio fell below 1 this would no longer be true.
As it stands now, the silver-gold ratio tells us that silver is still undervalued. This means, theoretically, silver is on sale.
With economic, industrial and monetary values driving the interest in silver, its no wonder so many people are turning to this precious metal.