By : Danny Esposito from http://www.digitaljournal.com/pr/745791
New York, NY (PRWEB) June 08, 2012 - Danny Esposito, contributor to Penny Stock Detectives, argues silver has been used as money throughout history, making its association with money equal to gold’s. He believes investors who argue that silver is not a monetary precious metal because it has more industrial uses than gold are wrong. Instead, Esposito suggests, silver’s exciting new industrial uses make it a more attractive investment.
In the article, “Silver as Precious as Gold,” Esposito notes, “Silver has the highest electrical conductivity of any element known to man and the highest thermal conductivity of any metal.”
Silver bullion’s ability to kill bacteria without harming the human body has made it invaluable in many medical applications. Everything from wound dressings to gowns to catheters to medical equipment is manufactured with silver bullion.
Research and development continues to find new uses for the precious metal. It is estimated that three-quarters of the silver bullion mined each year is already earmarked for industrial uses. This leaves less and less silver bullion for investment purposes, Esposito explains.
“China is the largest producer and exporter of silver bullion. However, over the last few years, it has cut its exports. Clearly, China has been using the precious metal for industrial uses,” says Esposito, “but it wouldn’t surprise me in the least if, besides hoarding gold as a reserve currency, China is also holding silver to diversify its reserve currencies away from paper money.”
“It is also important to note that, since the crisis hit in 2007, investors—for investment purposes, viewing silver as a form of money—bought roughly 5,000 tonnes of silver bullion,” states Esposito. “Since 2007, that number has reached over 15,600 tonnes. Although demand has fallen off recently by 10%, the most long-term holders are not selling.”
“With Europe in a seemingly never-ending crisis, China in a slowdown, and the U.S. unable to grow consistently, the presence of a global recession is real and upon us,” argues Esposito. “As such, money printing will be the solution put forth by central bankers, because it has been the only solution they have tabled since the crisis began—offering no other alternative.”
If history repeats itself, once gold rises, silver not only follows, but also outperforms gold by a large margin. Silver is much more volatile, so investors must understand that investing with silver comes with violent swings. Esposito argues it is worth it.
Source : http://www.digitaljournal.com/pr/745791