Silver’s Demand Prediction in 2015 by Heanjia Super-Metals
Types of Silver Demand
The demand for silver metal can be categorized into: Production and Investment. The production demand describes cultivating silver into a specific product form like jewelry, silver strip, silver mesh and silver foil that are used as a component in semiconductors, chemical compounds and soldering. Investment demand arises when silver is used in buying investment coins, bars or exchange trade funds. The use of both of these categories varies every year. For instance, the production demand was noticed about 77% and investment demand was 23%.
Production demand
The production demand includes consumption of silver in industry that is 65 percent in semiconductor, 23 percent in jewelry, 6 percent in photography and 6 percent in silverware. The production demand was considerably increased by 2.5 percent in 2013 however in preceded year 2012, the demand was reduced to 4.8 %. The production demand in 2013, however as compare to 2012, was lower than 26,745 tons that is used in the period between 2013 and 2014. The need of Silver metal was again nominally low in 2014, as the re-growth in Gold market value and meanwhile the electronic engineering sectors utilizes the alternative cheaper metals in the maximum possible cases. The overall demand of Silver metal was low in the earlier years.
The major fall in the industrial production growth is because of reduced silver use in the manufactured parts as well as replacement of silver in the photography by the digital technology to cover the market value.
Analyzing the possible uses of Silver in 2015, it gives a positive response, however not much stronger as it was anticipated in the last year.
Industrial Demand
In 2013, the use of silver in electrical and electronic industry was up to 44% of its industrial consumption. Use of silver in semiconductors industry gives a good estimation of its consumption on the industrial scale. The international trade of semiconductors was at the maximum rate in the 3rd quarter of 2014 and 5.7 % more than the 2nd quarter and 8% higher than 3rd quarter of 2013. The increased use has been specifically because of smartphones, tablets and other digital gadgets. As per predictions for 2015, the use of silver metal is expected to increase by 3.3% following the international semiconductor trade.
Increased use of silver is also noticed in both rechargeable and unrechargeable batteries. Regardless of being costly, these offer excellent performance and are suitable for use as powerbanks for tablets, laptops and cellphones. This latest market for silver based batteries is anticipated to increase the metal’s demand.
Advanced Uses
The advanced uses of silver metals are various as it is utilized in medical, electronics, transportation and packaging applications. Most of these uses includes smart tags, antibacterial advantages of silver and nano-technology. As long as these applications disclose their extensive application effect on silver, the demand of this metal will grow. The antibacterial advantages of silver show its great use in the diverse range of products such as consumer, health, corporate, community and domestic products.
Investment Need
The investors aiming at silver always remain consistent irrespective of the irregular flip-flops in its price. Investors keep lots of trust in the market. This is particularly accountable that the decrease in price was observed by 84% from 2008 to 2011. Still the investors didn’t sell their commodities. While keeping silver as an asset in the stock, it shows a great confidence in the perspective of the increased demand of silver in the near future.