Not too many people realize how versatile silver is and how much it is used in industrial applications. We gave you a beginners guide to investing that offered some basic explanations including a very direct distinction between assets and liabilities. We also offered a few suggestions for investment possibilities. Silver coins were one of those options.
For centuries the white metal has held value as a precious metal. But industrial applications make it even more valuable. The supply is limited and the natural value is so high that it could be an important possibility for your retirement accounts.
Here is a short list to highlight the value of the white metal.
Silver can be made into flakes, flattened into sheets, combined with other metals, ground into powder and can be used as a catalyst. It can be made into very thin, flexible wire for many uses in electronics.
The metal's thermal conductivity is unmatched so cheaper metal options are out of the question when seeking optimum performance. Silver is used as contacts in many electrical switches. Think of the number of switches in cars, houses, appliances and major industrial projects.
Its photosensitive properties made it ideal for photography. Meanwhile because it is non-toxic and antimicrobial, this versatile silver works very well in consumer and medical products.
Silver can be made into paste as well. A growing use for this paste is in the photovoltaic cells of solar panels. In fact it has been reported that solar panels are going the way of granite counter tops in parts of the western states of America. Instead of a "luxury," many home buyers are just expecting the solar panels to be a natural part of their new build. There are mortgage options that allow the cost be rolled into the deal.
Radio frequency identification tags are moving toward a replacement of bar codes. They hold more information and can be read from further away. Silver is a key element in those RFID tags.
Other uses of versatile silver include televisions, DVD and CD and even light emitting diodes,(LED). How common are those now? How valuable will that make silver?
While silver is not a semiconductor, when it is paired with one, electricity is transmitted much faster. This combination can be used to turn large motors among other uses.
Here is a link to a short page that details how versatile silver really is and how valuable it is both commercially and from an investment opportunity aspect.
There are countless other uses. So why is that important in a beginners guide to investing? Or even for an experienced investor? Because as usage grows, demand grows. Governments and big banks can try to hold down prices and they do, but when the cycle goes up, it can really go up fast.
Even though you may be holding American silver eagle coins in your IRA, the many uses of silver in the industrial world could help drive up the value of your retirement accounts.
Economic uncertainty is another driver of precious metal values. And there is no shortage of economic uncertainty around the world. The only thing we know for sure is that the policy-makers in the big banks that control fiat currency flow, have fired off their arsenal of manipulative bullets, with little to show for their attempts.
There is an excellent book that will give you keen insight into the mechanics and the reasons for investing in precious metals. The author is also featured in a series of amazing, insightful videos about the history of money. You can find all six of these videos from Mike Maloney in the resource library, located in the left margin of every page.
The author of "Guide to Investing In Gold And Silver" writes in that book, "Throughout the ages, many things have been used as currency: livestock, grains, spices, shells, beads, and now paper. But only two things have been money; gold and silver. When paper currency becomes too abundant, and thus loses value, man always turns back to precious metals. During these events there is always an enormous wealth transfer, and it is within your power to transfer that wealth either away from or toward you."
Silver has always held a place of value as a precious metal. But I am more excited about the many uses of it in our world. It would take two full pages to even outline all the ways very versatile silver is put to use. Years ago skilled tradesmen and artists crafted jewelry from silver using their imagination to make amazing pieces. Today skilled scientists use their skill and imagination to take this highly conductive, very reflective and very much antimicrobial element and use it to make cutting edge products and improve medical equipment.
All of which could bode well for someone investing in silver either via coins or perhaps in mining companies? They need to find this limited supply in the ground before it can be useful.
Silver has many uses. I hope that trend continues. It will make that part of many investors retirement portfolios look even better.