Why Should You Buy Silver Bullion?

By Author: Robert Wilson
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Learn why you should buy silver bullion today

The price of silver is expected to continue to increase in the coming years therefore savvy investors buy silver bullion.

While supply of silver remains limited—and the silver metal scarce—an increased use of silver in various industrial applications will continue to boost demand for physical silver. This increased demand will inevitably lead to higher silver prices. Here is an argument that explains the global warming will be responsible for the increased silver demand and prices.

The global economic rebound has already increased the industrial demand for commodities. As a result, commodity prices — including the price of silver — have risen substantially. The industrial demand for silver will increase by 10% from this year. However, it will increase even more as many industries find new ways to integrate silver in their products. In particular, a popular phenomenon — the global warming amid unsustainable and excessive green-gas emissions — herald a new trend of a widespread ...
... industrial application of silver in the efforts to reduce the impending global environmental crisis.

Investors buy silver bullion because silver has a relevant role in the search for new technologies that can mitigate or, eventually, reverse the negative effects of industrialization and economic growth. For instance, the automotive industry, which has been blamed for the adverse impact of green gas emissions on the air quality and climate change, is pursuing new technologies that reduce the reliance on carbon fuels/petroleum. The increased standards of living of the populations in the emerging nations with large populations — such as China and India — will lead to a higher demand for cars. An expected surge in demand for conventional vehicles will lead to such a high level of green gas emissions that would simply make them unsustainable. As a result, new electro-voltaic batteries have been developed, using silver as the main component. Therefore, the expected surge in the production and demand of electricity-powered vehicles in the future indicates that industrial demand for silver will surge as well.

However, the supply of silver remains very limited, not only because of the metal’s scarcity, but also because of a limited number of silver mines. This means that an increased industrial application of silver will require the opening of brand new mines or increased capacity utilization at the existing metal mining facilities. According to experts, opening of new mines to produce silver increases the cost of silver by between $7 and $10 per ounce. This high cost of increasing the capacity of silver production suggests that price of silver can only be expected to rise as silver finds more uses in some of the most important industries, such as the automotive industry.

The noted disequilibrium between supply and demand — namely the expected silver shortage because of a more intensive application of silver metal — says a lot about silver’s price prospects and about the value of owning silver bullion as a safe heaven investment. Apparently, even Warren Buffet decided to buy silver bullion and shares in some silver mining companies because of the great expectations about silver prices.

Thus, investors who buy silver bullion will do the same as the “Oracle of Omaha”—see the value of their investment increase in the future.

Learn more about about silver bullion and how to buy silver bullion from http://www.silverbuzzer.com/.

Silver is money, real money.