A Silver Shortage

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What many people who might be interested in silver investing might not realize is that we are currently in the middle of a large silver shortage throughout the world. Those who watch the silver prices, using such excellent tools as the Monex silver prices chart, know quite well that silver prices have been on the rise for quite some time now. As the historic silver prices demonstrate quite clearly, silver values have been rising for at least a decade, with a number of steep price increases during that period of time. This much is clear, and even obvious, to the casual observer of the silver price charts. What is less clear to those only beginning to research this field of personal wealth growth is that these historic price increases are being driven by a sharp increase in demand for silver with a concurrent drop off in silver production worldwide. In fact, the truth is that there is less silver on the market today than has ever been the case in the modern era.

Behind the high demand for silver we are currently experiencing is the fact that, each year, new uses are being discovered for this precious metal. Silver has long been known to have excellent conductive properties and is the reason it is so well regarded in the field of high end computing and electronics. As these fields of manufacturing continue to grow and innovate across the globe, silver takes a central role, providing an extremely valuable and necessary raw material to those in this important sector of the global economy. Silver is also well known for its antimicrobial character and has long been used in the medical fields to help fight infections as well as to be used in such roles as dentistry where cleanliness and stability are of utmost importance. In the field of medical science, silver fills an increasingly important position, allowing researchers to develop new techniques to keep us healthy and strong.

At the same time that these innovations in manufacturing and medicine are occurring, a number of forces have kept silver production low across the globe. Those countries with the greatest underground sources of silver that have traditionally supplied the world with the bulk of this metal have been thrown into chaos over the past several years by economic and political troubles. Russia, as an excellent example, was once one of the greatest producers of silver, but has had to curtail much its mining operations due to political turmoil and economic hardships. This country’s problems alone have done much to reduce the availability of silver for today’s users.

The upshot of all of this activity within the silver market is the steep increases in prices that we can observe so readily in the Monex silver prices chart. High demand coupled with low supply has driven values high. What is more, all indications point to the fact that neither factor—drop off in silver production or new uses for silver—will experience much change in the coming years. Thus, we can expect that silver will continue to rise in value, giving us the opportunity to invest well with this precious metal.