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Facts about Silver

LessThunk: We’re compiling some facts about silver.  We like silver coins and think they are a good investment for the very long term investor to weather most financial storms.

  • Element Ag (atomic number 47)
  • Called poor man’s gold, as more affordable
  • Full of exciting stories, e.g. from the colonial adventures in South America to the Hunt brothers cornering the market
  • Supply: about 1 Bn oz: per year 700M oz mined, 200 million oz. recycled. About 100 million oz. from “other” sources, like governments. At $17/oz., this is a $17 billion annual market.
  • Demand: most is consumed and used up by industry. Only 100 million oz. is bought by investors. http://www.silverseek.com/article/silver-market-facts-12695
  • All the silver ever mined, can fit in to a 53m cube — but 95% has been consumed
  • Precious metal, jewelery and industrial use
  • Most silver (66%) is a by-product (copper, zinc/lead, gold)
  • Currently the cost of mining silver is about $18+ per oz. All in costs, even higher
  • On average 17x more silver than gold in the world (gold-silver ratio right now is: 70:1) Plot from http://goldprice.org/gold-silver-ratio.html#36_year_gold_price

kitco_36 years_ratio_gold_all_data_silver

 

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Silver drachma from the island of Aegina, after 404 BC. Source: Wikipedia

  • Amazing properties
  • an ounce of silver can be drawn into a wire 8,000 feet long
  • highest electrical conductivity of any element
  • highest thermal conductivity and reflectivity of any metal
  • used as currency in coins for thousands of years .. Persions, Romans, Chinese, Greek, etc.
  • industrial use (more than 50% and growing): solar (100M oz/yer), air conditioning, water purification, dentistry, photography, medical use (kills bacteria, algae and fungi), clothing (kills bateria and fungi), electronic dvices, nanotechnology
  • Coer Mining is the largest US based silver producer (top producers: http://www.mineweb.com/uncategorized/worlds-top-10-silver-producers-updated-companies-countries-2/ ), but one can also invest into ETFs or silver streaming companies like SilverWheaton.

 

10_year_silverSource: http://www.kitco.com
– silver vs Dow Jones http://www.sharelynx.com/chartstemp/free/longtermdowgoldlogtr1800an.php


Categorised as: Investing | Life

Posted by: Kramer



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