Growing Demand as an Industrial MetalThe difference between silver and other precious metals is its growing demand as an industrial metal. Each year, more and more uses are discovered for silver’s unique chemical properties, ranging from biotech to electronics, and there is a growing concern that in less than 15 years, there will be no silver left. There’s simply not enough silver to meet this growing demand, which makes physical silver an attractive investment.
After silver is used within industries, like medicine or photography, it becomes useless. Consequentially, the market is starting to realise that when silver supply falls to zero, this metal will become the most precious of them all.
Affordable and Undervalued InvestmentIt has always taken 12 ounces of silver to buy 1 ounce of gold (12:1) - a ratio that has gone back hundreds of years. The current ratio is 75:1 implying that the silver price is massively undervalued. Many analysts and experts believe that silver should be trading at five times the amount it’s trading at at the moment. JP Morgan, amongst others, bought £300m of physical silver in 2015 and now the central banks are following suit.
With the price of silver is at a five and a half year low, you can now buy 65% more silver for your money than in 2011, making it a strong buying opportunity.