Excited with the news and planning to invest in silver coins? Here are a few reasons why investing in silver can be profitable in 2017:-
1. Supply of Silver in China
Silver inventories have seen a major fall since 2013 according to the Shanghai Stock Exchange. Once the supply has been depleted, silver metal will see an increased value due to demand by major economies.
Also, with the launch of China’s “One Belt One Road” project in 2014, the country had started stacking up on base metals to produce the largest infrastructure in the world. This had led to a depletion of silver reserves in China and started pushing demand for silver higher internationally.
2. Trump Presidency
Following the Trump Presidency, silver was trading at $16.28 which showed an upward trend of $0.09 (+0.56%). Year-to-date value has risen by 7.74%. The reason is the removal of uncertainty. Now that things have stabilized, the value of precious metals (silver included) has started to steadily climb.
3. Increasing Industrial Usages
Demand for industrial silver is also increasing. About 70% of silver is destined for industrial applications and other renewable energy products. Industrial usages of silver account for almost half of the silver produced worldwide. Most silver today is used in brazing alloys, solder, dentistry, batteries, LED chips, glass coatings, nuclear reactors, medicine, photovoltaic energy, photography, semiconductors, RFID chips, water purification, touch screens, wood preservatives and numerous other industrial usages. US, Canada, China, India, Japan, South Korea, Germany and Russia have been ranked the top countries with industrial usages for silver.
2017 is already proving to be an exciting year and the rising prices for silver will be a part of that.