Ultimate Guide to Silver Investing: Multiple Uses for White Metal
by: Eric Dutram / CommodityHQ
July 1, 2011
about: AGQ, AND, BHP, CDE, DBS, EPU, EWW, FNLPF.PK, HCHDF.PK, KGHPF.PK, KZMYY.PK, PAAS, SIVR, SLV, SLW, USV, ZSL
Silver has been an important metal for thousands of years, often used as a medium of exchange or jewelry in ancient times. The mineral was traditionally mined alongside copper and lead deposits across the Near East and the Mediterranean around the height of the Roman Empire. After the Spanish conquests of the New World, the focus of the silver market shifted to Latin America and the massive deposits located in Mexico, Bolivia and most importantly Peru. Briefly, the U.S. was at one time the world’s largest silver producer thanks to the discovery of a massive silver deposit in Nevada (the Silver State), although this production eventually petered out and Latin American production once again reigned supreme.
Today, silver still finds its way into jewelry and coins but it has also found its way into a number of more "modern" applications as well. Chief among these new age uses are a host of medical applications ranging from dentistry to wound treatment while the mineral also makes its way into technological applications such as photographic paper, batteries and audio connectivity wires.
Due to this multitude of uses, the metal has continued to be a popular investable asset, attracting investors from around the world thanks to its numerous potential usages as well as its traditional role as a store of value and an inflation hedge. There are a number of different options for investing in silver, including exchange-traded futures contracts, stocks of companies engaged in the extraction and sale of the metal, and both physically-backed and futures-based ETFs and ETNs. Investors also have the option of buying up coins or bars of the metal in order to obtain physical exposure.
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