According to the LBMA and COMEX, Gold assets stayed steady last year, however silver reserves fell from about 1.15million troy-ounces to 850,000. This decline has been happening not only in the United States but also in the UK. There is a rise in the popularity of silver which is causing turbulence in the financial world. Investors are always to figure out what’s going on and decide whether the time is right to sell silver Brisbane.
However, there are good reasons for the decline of silver.
- Rising Corporate needs
Companies that need silver are growing rapidly, and the demand for this metal is expected to rise in the next coming years. Here are some industries that are demanding more silver:
- In medicine- the precious metal is used in portable medical diagnostic devices. It is also a popularly used in surgical equipment, clean water systems, and other medical equipment.
- Space and Aeronautical industry: Astronomers use silver to build photovoltaic panels. Silver is also used inside space shuttles because of their antibacterial properties.
- Manufacturing and Technology
The use of electronics continues to rise with more of the world becoming digital. Manufacturers always use silver in high-end chipsets because of silver’s incredible conductivity. Automotive electronics use of account for about 5% of the demand in the world.
- A rise in the popularity of silver jewellery
With the rise in the cost of living, consumers no longer have enough money to purchase jewellery made from expensive metals like gold.
- Traders are anticipating gold-silver ratios to return to normal
Historically, the gold-silver ratio sat between 10 and 15-to-1 but, recently, it sat closer to 80-to1. This may cause silver assets to fall and the price to rise.
- Deductions brought the business owner
The silver industry predicted a silver shortage of about 194 million in 2022. It has happened with government mints struggling to source silver to make silver coins. With a rise in the demand and a supply shortage then it might now be a good idea to sell silver bullion because the price may also be higher.
- Getting ready for a global financial meltdown
Are we heading for the end-times? There are many people who believe we might be headed for Armageddon. Such talk often turns out to be nothing but it doesn’t stop the silver bugs and Preppers from hoarding as much silver as they can. It’s not just the crazy old man who has a bunker in his back yard who is hoarding silver in preparation for a total economic meltdown but companies are doing it too. With climate change and the threats of war the future is uncertain. Investors who are aware of existing economic events are looking at precious metals for protection. In this environment, every precious metal, including silver, is worth having.
The combination of high demand and reductions will be expected to make silver even more to come by in the market, raising the price of the product which is good for people who have invested their money in precious metals.