According to the Silver Institute, demand for silver used in industrial production is projected to approach 40 percent in the years spanning 2010 to 2015. Positive industrial fundamentals are cited for physical silver, due to a relatively stable market that is both established and emerging in developed economies.
Continued silver demand for fabrication purposes is likely to prolong its surge, since silver has no equal for the industrial processes in which it is consumed. Photovoltaics and electronics are two of the largest, continually increasing uses for silver. Growth in global middle classes secures the desire for electronic products, considered virtual necessities in most developed countries.
Substitution of cheaper silver for other expensive technological metals, like palladium and platinum is another positive impetus for future silver valuation. The search for silver substitutes appears unlikely to produce scientifically adequate or economically feasible substitutes.
Robust growth for other fabrication applications for silver appears likely. These uses include medical applications, batteries, and water purification technology. The only real downside risk for silver appears to be lagging economic growth, but history shows that physical silver typically rebounds rapidly after such fiscal downturns.
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