These blanks will be used to make the final coin. Then the slabs are fed through a machine that stamps out blanks. These rolls are then extruded into slabs and cut a certain length. The temperature must be exact, not too hot or too cool. The process of minting silver coins involves several steps. You then have a limited number of coins minted, some of them lost or discarded, leaving the supply of remaining coins gaining value. You have most of the commercial silver destroyed after use. When you translate the growing demand for silver into silver coins you find that the value of coins will increase more rapidly. In a two year period China imported 3,000 tons of silver. The Emerging Markets, especially China and India are rapidly becoming industrial giants. We will examine other countries where silver is legal tender. The state of Utah accepts silver as legal tender. People use silver more than gold for money. The analysts are predicting that supply will fall short of demand for the next decade. The above ground supplies are especially in short supply. Silver supply has failed to meet demand for the past 15 years. Add to that silver coinage and the overall deficit is 2,214 million ounces. A study by CPM Group, a New York Consultancy Firm found that new production plus secondary recovery fell by 1,897.9 million ounces short of meeting industrial demand. Silver is also an excellent reflector of light. Its use in medical technology is growing substantially. These are some items where silver is used:Ĭomputers, cameras, electronics, jewelry, sanitation, electrical appliances, refrigerators, compliant solder, clothing, medical, water purification, food hygiene, washing machines, vacuum cleaners, keyboards, counter tops, furniture handles, mobile phones, nano silver to deliver silver ions, kitchen utensils, electrical conductors, and coinageĪ recent study conducted in Israel found that silver infused paper could prevent meat packaging. It is important to note that after silver used it is destroyed, thus supply is always diminishing. The industrial uses for silver are growing by leaps and bounds. 101.3 million ounces was used for investments. India buys most of its silver for jewelry. A study in 2010 found that 487.4 million ounces was for industrial use. If gold doubles, silver will usually triple. Silver has a greater percentage increase than gold. If the normal ratio is used the price should be $120 per ounce. Fifteen ounces of silver equals one ounce of gold. Silver is undervalued when compared to gold. These problems create a lack of consistency of supply. Then you have fires and engineering problems that occur from using primitive equipment. Flooding is a major hazard as it, too, disrupts production. They have outdated infrastructures that make it difficult to mine the ore. Here is list of the top ten world silver producers:ħ.United States-Produces 38.6 million ouncesġ0.Argentina-Produces 20.6 million ouncesĪs you can see many of these countries have fragile political systems, especially South American countries. Here are some other reasons to choose silver coins:įirst, silver is mined in some of the most politically unstable countries in the world. Silver coins are also a hedge against inflation. If you are investing in stocks or bonds you can use silver coins to hedge your portfolio. Investing in silver coins can be a very profitable investment. Advertisement Buy Silver Coins in Australia
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