Silver Trading in 2023
Is commodity trading still viable?
Silver Trading in 2023
It is difficult to predict with certainty the future value of any commodity or stock, including silver. The price of silver can be influenced by a variety of factors such as supply and demand, interest rates, and global economic conditions. The COVID-19 pandemic has caused significant uncertainty in global markets and has affected many industries, including the mining and manufacturing sectors which can impact the supply and demand of silver.
That being said, some experts believe that silver prices may increase in 2023 as the global economy is expected to recover from the impact of the pandemic, which could boost demand for silver in various industries such as electronics, medicine, and renewable energy.
The industrial use of silver is an essential driver of demand. Silver has unique properties that make it useful in a wide range of applications, such as electronics, medicine, and renewable energy. As the global economy continues to recover from the impact of the COVID-19 pandemic, there will likely be increased demand for silver in these industries.
Jewelry and silverware are also important sources of demand for silver. Silver is a popular metal for making jewelry and other decorative items, and this demand can be influenced by factors such as fashion trends and consumer spending.
Investment demand for silver can also play a role in determining its price. Silver is often considered a safe-haven asset and investors may turn to silver as a hedge against inflation or to diversify their portfolio.
Additionally, the interest in Silver ETFs (Exchange-Traded Fund), a financial instrument that holds silver and trades like a stock, has been increasing over the years, given they provide a more convenient and cheaper way to invest in silver. This could also drive the demand for silver and a more widespread market appeal.
What is silver used for?
Electronics
In electronics, silver is used in a variety of applications due to its high electrical conductivity and low contact resistance. It is commonly used as a conductor in printed circuit boards, connectors, and switches. Silver paste is also used in the manufacture of solar cells to increase their efficiency.
Silver is also used as a coating for LCD displays, touchscreens, and other electronic devices to improve their durability and reduce glare. Due to its high thermal conductivity, silver is also used as a heat sink in electronic devices to dissipate heat generated by the components.
Other electronic applications of silver include its use in radio-frequency identification (RFID) technology, in silver-zinc batteries, and in silver nanoparticles for transparent conductive coatings.
Silver has been used in photography for over 150 years, and it continues to play an important role in the process today. In traditional photography, silver is used in the film, and the paper capturing the image. The film or paper is coated with a light-sensitive emulsion that contains tiny particles of silver halide, which reacts to light
Silver is used in some digital photography applications. Silver halide crystals are used in some types of digital camera sensors to capture the image, and silver is also used as a conductor in the printed circuit boards found in many digital cameras.
In addition to its use in capturing images, silver is needed in the printing process for both traditional and digital photographs. Silver-based inks are used to create high-quality prints with a wide color gamut, and silver halide papers are still used to produce high-quality photographic prints.
The electronic applications of silver protect the value of silver for the conceivable future, considering that for better or for worse, electronics are going to become a bigger and bigger part of our lives over time.
Medical
Silver has been used for medicinal purposes for thousands of years, and continues to be used in modern medicine today. One of the most well-known uses of silver in medicine is its antibacterial properties, which help prevent the growth of bacteria, viruses, and other microorganisms on silver. Because of this, coating surfaces with a thin layer of silver can give the item the antibacterial properties of silver.
Silver is used in a variety of medical products, such as dressings, bandages, and wound gels, to help prevent infections in wounds and burns. Silver-coated catheters and other medical devices are also used to prevent the growth of bacteria and reduce the risk of infection.
Silver-based antibiotics such as silver sulfadiazine are used to treat severe burns, and silver nitrate solutions are used to prevent infection in the eyes of newborns.
Silver-based compounds are also being researched for their potential use in treating a variety of conditions, including cancer, osteoarthritis, and inflammatory disorders.
Silver is also used as a coating for medical equipment to prevent bacterial growth and in water filters to purify water.
Even as the world moves away from the era of Covid-19, the virus has left lasting changes in several aspects of our lives. This includes greater attention towards personal hygiene, which will increase demand for antibacterial materials and substances.
Jewelry
Silver is a popular metal for jewelry making because of its beauty, affordability, and versatility. It is often used to make rings, bracelets, necklaces, earrings, and other types of jewelry.
One of the main characteristics of silver is its ability to be easily shaped, molded, and worked with, which makes it ideal for creating intricate designs and patterns. Silver is also a good option for creating large and heavy jewelry items, as it is relatively lightweight and durable.
Another advantage of silver is that it can be combined with other metals and materials to create a wide variety of designs and styles. Silver can be plated with gold, rhodium, or other metals to create different colors and finishes. This practice is very common in the jewelry industry because compared to other precious metals, silver is relatively cheap.
Silver is also used in the production of silverware, which is cutlery made of silver, and other decorative items.
How to invest in Silver
There are several ways to invest in silver, each with its own advantages and disadvantages. Some effective ways to invest in silver are:
Physical Silver: You can purchase physical silver in the form of coins, bars, or rounds. Physical silver is a tangible asset that you can hold in your hand, and it can provide a sense of security and control. However, it can be costly to purchase, store and insure.
Silver ETFs: Silver Exchange-Traded Funds (ETFs) are financial instruments that track the price of silver and trade like stocks. Investing in ETFs is a convenient and cost-effective way to gain exposure to silver, as you can buy and sell shares on a stock exchange. However, it is important to note that some of these ETFs are not backed by physical silver and could be subject to counterparty risk.
Futures Contracts: Futures contracts are agreements to buy or sell a specific amount of silver at a fixed price on a future date. These contracts are traded on commodity exchanges and are often used by investors looking to hedge against price fluctuations or speculate on future prices. However, they are considered a more advanced form of investment and not suitable for all investors.
Silver Mining Stocks: Investing in silver mining stocks can be a way to gain exposure to silver prices while also benefiting from the performance of the individual mining company. However, the price of silver mining stock can also be affected by the cost of production, management efficiency, and other factors that are specific to the individual company.
PFS Buyer Club
If you are interested in investing in Silver, I would heavily recommend purchasing either physical Silver or investing in a Silver ETF, as opposed to an individual stock. This is because my evaluation of silver is based entirely on the value of silver, not the value of a silver company. If you are unable to store silver yourself, a widespread Silver ETF would allow exposure to Silver, while mostly removing the risk of issues occurring in a Silver company/mine you may have invested in.
Another option that is similar to buying physical silver, but a much more reliable investment, is PFS Buyer Club. The idea behind PFS Buyer Club is that you purchase a release from the US Mint, then ship it to them immediately upon receiving the release. This is much more reliable compared to other forms of silver investment because you can preorder the products from the mint, and PFS Buyer Club will reach out to you several weeks before the product launches to confirm how much they will pay.
While it may seem like PFS is either a scam or the people running it are just dumb, there is a very simple explanation for why they are willing to purchase a premium.
The offers PFS makes are always on some form of coin. In coin collecting, a perfectly minted coin is really valuable, so it is worth paying a $50 premium hundreds of times if you can get one “good coin.”
Some US mint products have a limit to how many each household can purchase. Because of this, if PFS wants to purchase more than the household cap they have no other recourse than to pay a premium to a bunch of people.
PFS Buyer Club currently has planned an offer on the 2023 Morgan & Peace releases. The offer extends to five different sets, and PFS recommends buying 3 of each set. At current estimations, it is about a $1360 investment. However, it only costs around $5 to create the pre-order, and you can cancel it at any time. You are only charged once the product is released, at which point the coins are also shipped. Since PFS announces what they will pay for the coins before you pay the actual amount, there is little to no risk in this investment because you can simply cancel the order if you don’t think it’s worth it when the time comes. I personally am planning on taking advantage of this offer, as it seems like a fairly safe way to test the world of commodity trading.
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If the global economy is expected to recover from the impact of the pandemic, which would boost demand for silver in various industries, then its demand as a hedge will fall in tandem. I think it is hard to predict which force is stronger in determining the silver price.
Thanks for the info on silver, Christopher!