Precious metals provide long-term assets that have seen consistent price growth, for hundreds of years, and these prices are directly related to inflation, rate growth and rising of the question. The last rally in precious metals was witnessed in the first half of 2016. The main macroeconomic factors responsible for the rally in precious metals are the risk of debt crisis and deflationary pressures. Silver (or argentum (Ag) in Latin) has many benefits. It has no counterparty risk, meaning you do not need to enter into a complex commercial contract involving various regulatory provisions, partners or risks, to hold silver, as is the case with bonds or shares. Silver or gold like precious metals do not default. These are physical assets that can be held in real terms and provide long-term investments with stable growth. These metals have been used in coinage throughout historical eras and have significant value. These have appreciated over time, which does not happen in the case of paper money. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The world is becoming more and more dependent on paper currency, debit cards and digital transactions where the risk of crisis or losses due to unexpected factors, such as changes in forex standards, economic crisis, bank defaults cannot be ruled out , recessions etc., while physical silver or gold are assets that can be held or transported to other places and wherever you get the same value for these metals. Currently, the price of silver is not very high, which supports investments in it for diversification purposes. It is reasonably priced compared to other precious metals, and some investors hold huge volumes of the metals, which have seen excessive growth over the past 10 years. In bull markets, silver sometimes performs better than gold. Gold's gain in the years 1970 to 1980 was 2328%, but silver's returns were over 3000%. From 2008 to 2011 the gains on gold were up to 166% and on silver 448%. Globally, silver supplies are decreasing but demand is increasing. Most government treasuries do not hold large amounts of silver. Only a few countries in the world such as the United States, China, Mexico and India hold large amounts of silver. Global government-owned silver stocks have declined by 73% in recent years, while at the same time industrial demand has grown, predominantly for solar panels and batteries, and it is one of the metals of industrial use due to thermal conductivity, conductivity electrical and reflective properties. The highest percentage of silver is used in electronic products, batteries, solar panels, biocides, etc. At least 1/3 g of silver can be found in mobile phones and the demand for phones is expected to increase in the coming years, which will increase the demand. for silver. The self-heating windshields of some new vehicles feature ultra-thin layers of silver that prevent the glass from freezing. It is used in photovoltaic cells and as a catalyst for the production of some chemicals, plastics, etc. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Mining production of silver is shrinking and its secondary supply is also shrinking.
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