The Supply-Demand Equation Bodes Well for Rising Silver Prices

Unlike gold, silver is used in more commercial and industrial applications. The list is extensive – electrical contacts, mirrors, jewelry, currency coins, photographic films and as a catalyst in many chemical reactions.


However, silver production is dropping. Much of it comes as a by-product of other mining and refining, primarily lead and zinc. But due to plummeting prices created by over-supply, many lead and zinc mines were mothballed back in 2008.
As a result, silver production stalled with lead and zinc – and inventories are now at historic lows.
That’s the supply side of the equation. But what about industrial demand?
In short, it continues to rise. So with silver supplies lagging, silver prices are likely to head in one direction: up.