Silver is useful for Construction but also a Store of Wealth

This graph is fairly representative of the silver story.As silver,like most commodities, moves in cycles.It will move up for a number of years and the price increases will fall within a tight range.But then the price may fall or rise for smaller price increases for a number of years.The annual  increases over the whole period  can be traced into a pattern.And the pattern for silver is quite similar to that in the graph above.experienced small For awhile it showed continuous small price increases gradually getting larger (as in the middle period above) and lately larger price increases.

    Silver has a role in Construction

   Gold has for a long time been used as a measure of wealth and a relatively safe haven.When the economy was considered less stable more people put their money into gold;gold was a store of wealth. And it provided relative safety.However over time gold was used more not less as a store of wealth.Silver has for a long period of time been connected to gold and was also  thought of as a store of wealth .  However  not nearly as valuable  and not as directly connected to financial stability as gold was.Silver moved with the price of gold but only at a fraction of gold's movement.Still financial instability was and continues to be directly connected to a rise in the price of silver.It provided not only a  store of wealth  for it's investors but an increasing store of wealth.

For quite awhile silver 's main role was in building mirrors of all kinds.Silver's usefulness in mirror construction  was directly connected to  it's  reflective ability.It's ability to reflect is greater than any other element and it's weight required to complete it's function  is very reasonable.It was a steady role but not one that lead to large or even medium increases in price.But silver's owners  found a new and important role for silver. .It is used to improve the efficiency of electricity generation in solar panels.It is also used in the production of electricity vehicles.Presumably in the workings of the lithium batteries.Both of these uses are growing in importance and have lead to the new found attention and price increases of silver.These new uses have acted to stabilize the price of silver.

Price of Silver Forecast up to 2030

This blog considers that the trends seen in 2024 and 2025 will continue to a large extent until 2030.The political turmoil around oil and the middle east will continue and  will not be resolved completely.And the American dollar will be weak with a few bright spots.This means that  many investors will pull out of the dollar and into both gold and bitcoin.But there is no doubt that that gold is the safe haven of choice.However this will put upward pressure on both gold and bitcoin.And as we know when gold moves up silver will follow although not to the same degree.This could lead to  choppy behaviour for silver.But the extra demand put on silver for construction purposes will even out the downward pressure on silver.So in conclusion silver will continue to march slowly towards it's former high of $115 per ounce.Presently it trades at $84 an ounce and may not even reach $90 an ounce by December.But it's direction is clear.It is saomewhat difficult to predict the upward limit on  the silver price But with the increased usage of silver for solar panels and electric vehicles this does put a downward limit on silver.

                                                                                                                                               

  Dale Mcintyre (M.A,Econ) wrote this artZacks Researchicle on silver.He is a freelance writer for Zacks Research and has written many articles for Zacks.