Earlier today I wrote the blog "Factors impacting Silver prices" and promised to write the blog on industrial demand for the silver.
Of around 30,000 metric ton of silver production every year, approximately 27,000 metric ton is consumed towards industrial demand (including jewelry) which is a staggering 90%! I club jewelry as part of industrial demand simply because the main vehicle of investment remains bullion.
So where is all this silver getting consumed in:
- Solar panels - Silver's sensitivity to light makes it the best candidate for use in photovoltaic applications.
- Photography films - this was the biggest consumer category of silver but with an advent of digital photography, its use is on the decline.
- Medicines - Because of its antibacterial properties, it is the metal to be used in medicines for treating infections. It is also an ideal candidate for dental fillings
- Electronics - Silver is the best conductor of electricity and as a result, it is widely used in all the electronics.
- Brazing and soldering - a High tensile strength of silver makes it an ideal candidate for use in brazing and soldering products.
- Chemicals - Silver acts as a catalyst in many chemical reactions which are used in plastics
- Jewelry - In addition to pure silver jewelry, silver is often used in combination with other metals. For example, the ring to fit a diamond is invariably made of silver.
- Mirrors and glasses - Due to a highly reflective surface, when polished, it has been in use for centuries for making mirrors and glasses.
- Bearings - while steel is the strongest material for bearing, silver has a higher melting temperature, making it ideal for coating the steel bearings.
- Water purification - The microbial properties are leveraged to preserve the food for longer periods of time and for purification of water.
- Awards - Often ignored is the fact that the second place medal is invariably silver!
Can you think of any other use? Write in comments below. As always, upvote the article and click the "follow" button, if you like the article.
