Since beginning its most recent sustained climb in mid-2002, the price of silver has increased from less than US$5.00 per ounce to its current trading level of around $24.00 (Nov. 2010).

The metal's very favorable trend has been sustained by:

1. increasing industrial demand (especially in technology and electronics);
2. a continuing movement into silver as an investment vehicle;
3. a virtual disappearance of above-ground silver stocks;
4. all-time low levels of LME and COMEX silver holdings;
5. much higher demand from China
6. lower levels of scrap silver, especially from photography as a result of the continuing shift into digital technology.

Fabrication demand continues to outstrip supply. Combined with the increasing investment demand, the market will likely remain robust.

For an excellent and detailed discussion of world silver demand/supply fundamentals and statistics, visit The World Silver Institute's website: www.silverinstitute.org.

Silver's Primary Uses

Despite declining use in photography, silver's broad utility continues to increase. The white metal's unique properties and versatility are leading to many new applications in science, technology, medicine and industry. Ongoing research promises many more new uses.

Silver is the most conductive of all metals, so it's a key component in electrical circuits. Its extremely malleable and ductile, which is why it has always been so highly valued for jewelry and silverware. It's also a natural biocide. Silver withstands extreme temperatures. Its high luster makes it the best reflector of light, leading to its use in mirrors and related applications.

Here's an overview of silver's key uses today:

Photography

Because its quality cannot be matched by digital, silver is still preferred for many uses including X-rays and cinema.

Health and Medicine

Its antibacterial and healing properties have been known for centuries. Modern medicine is embracing silver because, unlike antibiotics, bacteria cannot build immunity to it. Silver is finding increasing use in water purification, clothing, food and beverage containers, hospitals, air cleansing and safer construction materials.

Electronics

Almost every computer, cell phone, appliance, automobile and home contains silver for high electrical conductivity.

Jewelry and Silverware

This use consumes nearly a third of the world's silver. Why? It's soft, malleable and beautiful. It alloys extremely well with gold, and it's resistant to bacteria.

Store of Value

Because of its intrinsic value and beauty, silver has long been used as a medium of exchange in coins, bullion, bars and other forms. As recently as 1964, United States dimes, quarters and half-dollar coins contained 90% silver.

Here are other links with useful information on silver markets, uses, trends and history:

www.kitco.com
www.silverusersassociation.org
www.absolutefact.com/Element_Silver_Facts.html