It seems that silver might be the best raw material for investors to hold on to. At least that’s what long-term silver analyst Israel Freidman told Mineweb.com last month in a conversation on the sustainability and future prospects of silver.
Although Freidman’s hypothesis has been largely criticized, he does make some poignant observations about silver, largely based on its industrial and investment demand.
Freidman predicts that silver will grow steadily with GDP and population. This is mainly based on the high energy conducting power of silver and its use in electricity networks. There’s really no better, accessible metal conductor than silver, and as construction around the world continues to grow, silver will be needed readily to fulfill demand. Not to mention silver’s use in many technologies, including solar panel manufacturing (a market sure to grow in the coming years).
Friedman references the underlying growth of silver in the last thirty years, despite losing key markets like the photographic field (now a digital photography field). However, aiding the industrial industry is a strong consumer investment in silver. The U.S. Mint Silver Coin is the most popular in the world, and Freidman think that one day it will be in such high demand that premiums will increase exponentially.
With the combination of raw industrial use and high investment demand, Friedman expects silver to one day surpass the price of gold. That might be a lofty prediction, but it is nice to know that maybe silver will be a better investment than we’ve expected.
Visit us at Numis International in Millbrae for more details, to meet Uncle Al, and to sensibly invest in silver bullion, gold, and rare coins.
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