Silver - An investment Opportunity

Investing in Silver

As observed by many analysts across the world silver has been surpassing gold investments in yielding attractive returns for the investors. In the last one year, silver has drawn attention of global investor community as the grey metal has outperformed gold by gaining over 24% against 16% return in gold. 

Silver unlike gold has multiple applications including industrial uses. This has created large opportunity for better returns.

Uses of Silver: -

There are many industrial uses of silver because of silver’s high tolerance for heat and silver’s electrical conductivity.  For example, a use of silver is to coat the touch-sensitive switches and buttons in television sets, telephones, cell phones, toys and computer keyboards. Silver is also being used in various consumer durable goods like LCD’s, LED’s, A/C’s, Mobile Phones etc. whose demand was low during previous years due to recession. Going forward this demand in consumer durables is expected to rise by at least 10% CAGR for the next 5 years.

Silver demand from Jewelry has remained constant during the previous few years. However this is also likely to pick up going ahead as demand from various emerging markets like rural India is likely to increase.

Coins and Medals demand in 2008 has increased rapidly in the last few years to reach a 10 year high and we expect this trend to continue

New usages

The use in thermo photovoltaic cells to generate solar power is also increasing demand. India plans to generate 5 GH Power by 2020. There are various subsidies and advantages provided by various countries for generating solar power. The application of silver in medical science is another big avenue.

Hence we recommend investors to park at least 5% of their investment surplus in Silver.