If you neglected silver as an asset or thought of it only in terms of silverware so far, think twice. Silver is one of the rarest and extremely valuable metals out there. It is also the single metal that has a dual nature – it is used heavily in industry but is also highly valued as an investment tool.
Quick facts for silver used in industry:
- Silver is the best electric conductor of all times. That’s why it is used in pretty much every electrical appliance. Moreover, with the rise of the solar energy, silver is in high demand. Around 20 grams of silver are needed for a panel that produces 1kWh energy from the sun.
- Silver is one of the best thermal insulators also. All the thermally insulating glasses have a coating that contains silver. Some high thermally performing clothes contain silver for insulation.
- Silver has one of the best anti-bacterial properties. It makes bacteria cells fall apart literally. You may have heard that silver is used in water purification technology. The rich in the past started using silverware partly because of the anti-bacterial properties. Silver makes antibiotics much stronger.
Quick facts for silver as an investment/financial asset:
- Silver has served as money for thousands of years due to its characteristics. Even american coins up to 1971 contained a fair amount of silver in them. Any United States dime, quarter, half dollar or dollar that is dated 1964 or earlier is made of 90% silver.
- Silver is used heavily for jewelry and all sorts of “schmuck”. Especially in the east – India, China, Bangladesh etc.
- Silver is one of the best hedges (gold being its big brother) in times of turmoil, distress, inflation, wars etc. And it has been like that for centuries – over and over again. Who kept gold and silver during hard times, came out as a winner at the end.
Can you think of any other asset with such characteristics?