Silver Still On Track To Restore Its Glory?

Silver has lagged behind gold in recent weeks but renewed optimism in the precious metals space and expectations of growing industrial application helping the grey metal attract some attention.

The gold-silver ratio has fallen from its early multi-year highs, but still remains elevated, hovering above 79; analysts have pointed out that the historical average for the ratio is around 50.

Silver’s industrial component has many investors hopeful about a renaissance of the “other” precious metal.  New applications for silver made headlines in recent history: streets covered in solar panels, solar powered planes, double-digit growth projections for silver used in ethylene oxide catalysts and an endless array of new applications in textile

Did silver deliver?

The short answer is: yes.

  • From prototype production to beta testing, silver panels are presently being scaled up to cover 1,000 kilometers (about 600 miles) of public streets in France, producing enough energy for an entire village of 5,000. Production is starting right now with completion scheduled in five years.
  • The idea of Solar Impulse, the plane designed to go around the world on solar power alone, is alive and well. After extensive repairs, the plane’s trip around the world will continue in April this year.
  • The Silver Institute reports an expected 25% growth rate in ethylene oxide catalyst consumption this year after an extremely strong 40% growth in 2015.
  • Silver, meanwhile, can be found in a large number of consumer products ranging from deodorized socks and sports clothing to smart phone screens where its anti-microbial properties matter.

What is more, the Silver Institute expect silver to gain market shares even in classic markets like jewelry (+5%) and coins.

All factors combined, silver is therefore looking to reclaim its industrial relevance and play an important role in shaping a more sustainable world.

By Bodo Albrecht,
Follow me on Twitter @BodoAlbrecht