Investing in silver has become more popular over the last few decades and many factors have contributed to a rising silver demand. One of the biggest factors was the end of the Silver Standard in 1964, when the US treasury stopped minting silver coins for circulation.
At that time, silver’s intrinsic value grew higher than the face values of the coins themselves, forcing mints to make common coins from cheaper metals. Since then, the majority of silver clad coins have been removed from common circulation and set aside as an investment or traded for their silver content values.
Industrial uses for silver are also increasing, adding to the recent surge in demand, helping silver achieve strong returns in the markets over the last few years. Silver is used for many modern industrial applications. Demand for silver is strong and mining companies around the world will continue to be pressured to find silver reserves to keep up with the demand of investors and collectors.
Silver is a commodity in the stock market. Silver investors seek safety in silver as a hedge against plunging common equities and US dollar assets. Many financial consultants now strongly recommend that investors balance their portfolios with at least 10% invested in precious metals.