Silver: 'the single best asset you can own'

Since MoneyWeek grew keen on silver in 2004, it's risen from under $8 to almost $14 an ounce. And the long-term outlook remains compelling. We look at the best way to buy in.

Since MoneyWeek grew keen on it in 2004, silver both an industrial and a precious metal has risen from under $8 to almost $14 an ounce. And the long-term outlook remains compelling. The market is extremely tight. Sixty-five years of consumption exceeding production has "decimated world silver inventories", says Ted Butler in Investment Rarities. With mined silver undershooting demand for the past 15 years, government stockpiles have fallen from 2.2 billion ounces in 1990 to around 300 million. Experts reckon that, by 2010, inventories will be "critically low", says Kevin Kerr on Marketwatch.com. Moreover, it's hard to boost production rapidly as silver is largely a by-product in other metal mines.

Industrial applications for silver are on the rise, according to metals researcher GFMS. Silver is used in film processing, medical products (it kills germs without harming the body), electrical appliances and a series of high-tech devices. Batteries, superconductors and microcircuits are areas in which new uses for silver are being explored and where new demand should increase exponentially, says James DiGeorgia of Gold & Energy Advisor. Industrial demand should keep rising long term as expanding middle classes in emerging economies aspire to Western lifestyles.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.