Both gold and silver have historically been considered as stores of wealth, with silver in everyday use in coins until the seventies.
Unlike gold, silver is enjoying a growing use in manufacturing, the medical and other high tec industries, more than offsetting the diminishing use in photography.
Demand from the jewelry industry remains constant, the gold /silver ratio is out of historical synch (15:1) at around 60:1 and the premium over the silver content in the coin collectors market is said to be near its highest at up to 15%. It is also reported that the physical metal is in short supply but that is likely to be a short-term situation. Read more
After halting imports of silver for three months due to low demand, India has imported 24 tonnnes in May and June.
Although demand is expected to be low for the next month it is expected to pick up when the June to September monsoon period is over.
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Known for centuries for its infection fighting properties, silver is now being incorporated into bed wear that is already in use in some hospitals in a bid to stem the advance of MRSA (methicillin resistant staphylococcus aureus) that can be fatal and other bug born infections.
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The short answer is yes and yes again!
The correction that has taken place in the last week or so is nothing more than a blip as precious metal prices have followed the general market see saw.
The problem is that the wall of worry about the US and other economies is growing higher week on week so it is hardly surprising that many nervous investors who have seen fat profits in their silver and gold positions have cashed in.
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At one time “silver” coins actually contained a considerable amount of silver, 50%-90% depending upon the issuing country.
Up to 1965 US dimes and quarters were minted with 90% silver and half dollars contained 40%.
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