In 2020, despite the turmoil in the markets and the economic upheavals, Silver proved to be a resilient, reliable metal. COVID-19 was hard on commodities but silver performed more strongly than it has in over a decade. In August the precious metal reached a seven-year high of $28.32 an ounce after having being thrown down to lows of $11.59. This performance by silver surpassed expectations. This precious metal outperformed gold, climbing by as much as 137 percent making gold’s 38% gain seem paltry. Investors who heeded the advice that many were giving to buy silver bullion Brisbane made a tidy profit.
Silver is known to thrive under the same macroeconomic, monetary conditions and political drivers that affect the price of gold. Historically, silver is always more volatile than gold, so with everything that has been happening to gold, the high price was to be expected. Many economic analysts were predicting a sharp rise, some even predicting that the price can go beyond $100 an ounce. However, that seems a little bit lofty.
Silver is expected to capitalize on the industrial and economic recovery post-COVID. This is because the greatest demand for silver comes from the manufacturing and technological industries which have slowed down due to the 2020 lockdown. Silver is also used in the manufacturing of photovoltaic cells used to make solar panels. With the massive and global shift towards greener energies, the demand for silver is set to increase even more from 2021 and further.
Silver has many unique properties that make it ideal for industrial purposes.
For starters, silver is an excellent electrical and thermal conductor. It is malleable and ductile brought to be flattened into thin sheets or drawn into thin wire. Pure silver is corrosion resistance. These properties make it very important in industrial and electrical applications. To add to the properties previously mentioned, silver has anti-microbial properties and is not toxic to the human body. This is why it is often used in medical applications and in other consumer products. The recent discovery of nano-silver means that the demand for silver is growing. This explains the price increase and paints a picture of a future world where silver is an extremely important and valuable precious metal.
The volatility of the precious metal markets in 2020 is expected to continue into 2021 and beyond. In 2020, investors looked to silver as much as they looked to gold as safe haven investments. Investments in silver are projected at 236.8 million ounces with America recording the highest increase. Australians weren’t doing too badly themselves. The demand might have been low for silver jewellery but many people searched for ways and places to buy silver bullion Brisbane.
The lock down restrictions disrupted supply chains and factories were cautious about using their inventory. With the economy expected to go into recovery mode by mid-2021. Silver could very well reach those lofty highs.
Industry insiders believe that the growing clean energy sector has got everyone excited. People are diversifying to silver because o the impending rise in demand. The idea of buying silver now is to avoid the great rush to silver when industrial production ramp up. From the innovative uses of silver one can see that silver is the metal of the future- in more ways than one.