Commodities
Best Financial Markets Analysis ArticleSilver was decimated in last year’s market rout falling by over 80% in just seven months. Part of the reason is that it is not just bought for investment or jewellery purposes but is an industrial metal as well. Most people think of its industrial use in photography, but in fact it has myriad uses in the medical field because of its antibacterial qualities and more recently in creating superfibres for the clothing industry.
Polyester starts life as grain alcohol and, flowing over silver, is converted into ethylene oxide, the man-made fibre’s building block. Warm polyester fibre clothing -- which in the coldest weather wicks moisture away to keep the wearer dry -- is sweeping the outdoor clothing industry. It’s uses in electronics are well known as it is one of the best conductors of electricity. Many of you may already own American Silver Eagles.
Since their introduction in 1986, American Eagles have become a leading silver bullion coin investment product with more than 180 million one-ounce coins sold.
Yet despite the fact that much of the silver used is recycled again, it has been running a mining deficit for 15 years now. That means that global consumption has exceeded that mined for the last 15 years. So why has the price not exploded? I think it soon will. Silver’s Bull market started in 2001 when it bottomed at $4.04 and at its peak last year it hit $21.35. That is a rise of 528% in seven years. I think that it will do that again in the next seven years. If we look at the quarterly chart below, we have only completed Major Wave 1 (and probably seen the low point of Major
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