Precious new industrial uses bring shine to poor man's gold
Robin Bromby From:The Australian September 02, 20113:07PM
ONE of the questions investors have to ask themselves is, What is silver - an industrial metal or a precious one?
Possibly for the first time in the existence of the metal, the two may co-exist on relatively equal footing - which is why silver stocks are so appealing to investors at present.
This means news from explorers is now getting more attention.
Today, Investigator Resources (IVR) said it had "significantly" upgraded its Paris silver discovery on South Australia?s Eyre Peninsula. Latest drill results include 4m at 913 grams/tonne, 3m at 554gt and 19m at 119gt. We also saw more drilling results from Silver Mines (SVL) and its Webb?s project in northern NSW. These included 5m at 113gt silver (along with copper, lead and zinc) and 4m at 293gt.
Originally, silver was predominantly seen as a precious metal - after all, it was the basis for coins and, in China and the US, was the backing for the currency issued by the government.
Then, as the gold standard superseded silver after the Federal Reserve was established in 1931 and, in 1932, the Chinese went off the silver standard, the white metal was eclipsed by its yellow counterpart.
Then more and more industrial applications for silver dominated its use - principally in photographic film. The demise of film in the digital age has led some less informed commentators to predict the collapse of silver. But there are a myriad new uses - and many medical ones connected with silver?s resistance to bacteria.
The latest bulletin from the Washington-based Silver Institute outlines some new industrial uses for the metal. A roller pen has been developed to use ink made from silver particles, a solvent and polymer with the same consistency as commercial ink; at the University of Birmingham, scientists have found a way to make stainless steel surfaces bacteria-free by infusing silver into the surface; silver is being used in a new fluoride paste that prevents decay in the dentin, the layer below the surface enamel on teeth - the silver kills bacteria.
At the same time, its appeal to investors is at a new high.
The metal, after a recent retreat, is back over $US40/oz, trading in Asia today at $US41.59. Silver is see as a "poor man's gold" ? a safe haven but cheaper to acquire. At today?s quotes from the Perth Mint, it requires an outlay of only $413.70 to buy a 10 ounce silver bar, against $1762 for 1oz of gold.
And India is one country where the demand for silver, for hoarding, is very high.
