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Industrial Use of Gold and Silver - A Comparative Analysis for Investors

The current market valuations have encouraged speculators to bank upon gold and silver as propitious investment options capable of lucrative and robust returns.
The bullion aficionados across the globe incessantly harp on the ever growing importance of precious metals for industrial use, motivating the common mass to capitalize on the opportunity to multiply their assets.

Let's browse through the scope!

Gold and silver seems to outperform the entire league of precious metals. Gold being a historic winner in terms of appreciation since ages, the value is attributed to its rare availability on earth with respect to silver. Annual supply of new gold looms at around 120 million ounces, whereas, that of silver lingers around 1 billion ounces.

The supply in a way makes the latter more volatile, subjecting it to incredible price fluctuations, way higher than gold! Yes you heard it right! In fact, it has been historically evident that bear markets have experienced drop in silver prices more than gold and vice versa in case of bull markets. Therefore, in spite of being undervalued, silver often reaps higher returns than gold. Silver, often termed as a poor man's gold, is an affordable investment option for commoners with marginal capital at their disposal for investment
  • Current trends seem to favor the demand for silver quite a lot. Its unparalleled application in photo voltaic technology owing to the incredible conductive nature and reflective property makes it the best pick for harnessing sunlight.
  • Its conductive nature is also put to use in the manufacture of electronic appliances and gadgets like computers, keyboards, televisions, batteries, cell phones, calculators, cameras, watches, clocks, and microwave ovens and in coating DVDs and CDs.
  • The reflective property also makes it the best alternative for standard mirrors
  • The antibacterial property is used in sterilization. Silver is used in the manufacture of surgical equipment, catheters, endotracheal tubes, hearing aids and antibacterial creams
  • Aqua filtration and purification processes demand silver
  • Anti Biotic resistant super bugs like MRSA can be treated with silver.
  • Besides the above, Silver is used in a large scale in manufacturing traditional jewelry as per the custom of specific races.
Among the selective drawbacks, Silver is tough to store in comparison to gold considering its volume. Gold uses much less storage space, is easy to transport and does not get tarnished easily. The susceptibility of silver to market fluctuations and economic upheavals often make gold a judicious choice.
  • The unique attributes of gold besides its value and price has proved to be a boon for the world. Even now, considered as a commodity, the versatility of the metal has encouraged its use in industrial sectors has multiplied over the years, ranging from manufacturing of electronics to space flight.
  • The inherent ability to resist corrosion prevents it from becoming a liability and proving it to be one of the most precious metal available for dynamic use. The US is known to have designed spacecrafts with pure gold which has stood tall against the test of time.
  • The ductile nature allows it be converted into thin wires without breaking off. The ease with which gold can be shaped and its resistance free nature along with its hypo allergenic attribute makes it the ideal choice for dental fillings. The amalgam of gold and a hardening agent create strong and durable gold fillings. It also serves to be useful in the treatment of arthritis.
  • Malleability serves best in making great contact nodes.
  • The natural thermal conductivity of gold tempers electronic gadgets, which would be otherwise too hot to be used.
Gold happens to be a recyclable alternative while ounces of silver is disposed off and destroyed to industrial processes. This has lowered silver stockpiles across the globe which is almost behind the curtains, thus, has not yet impacted investors much.

Central banks maintain huge reserves of ever appreciating gold owing to the ever increasing demand for the priceless metal. Gold purchase premiums are definitely higher considering just 12% of its demand can actually impact the price, thus, can serve as a safe investment option.

The above factors consolidate and dictate the value of these metals to a large extent besides the primary speculation. So, investors ought to adopt a rational approach towards zeroing down upon any one of it at a particular juncture considering the sudden paradigm shift being experienced by the bullion industry and world economy at large.
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