Lear Capital: Why Silver Supply is Disappearing the Nano Way

By @ibtimes on

DaveSilver is skyrocketing - and I don't mean just in price.  It is literally being launched by rockets aimed at Libyan forces.  Each Tomahawk missile, some 200 of them, are said to have contained anywhere from 100 ozs. of silver to 500 ozs. silver each.  I tried to confirm this and cannot find specific data to support what others claim.  I can confirm that silver's use in electronics is growing.  I provided some of that information in a previous article that you can revisit here.

While some suggest silver's current surge in price can be attributed to the near 3 tons of silver that may have been blown to bits over Libya, I beg to differ.  One Bloomberg release reported that the missiles fired at Libya are not planned to be replaced as remaining stockpiles of Tomahawks still number in the 3000 range.  Whatever was fired was actually consumed (taken off the market) years ago when the missiles were constructed.

That said, I found more specifics on why the silver supply is diminishing as new uses continue to be discovered.  Silver has some amazing qualities as a bactericide, conductor of electricity, solar energy generator and even poker player.  Next time you sit down in Vegas to play poker, someone is scanning your chips to help determine what kind of player you are and how much time and money you spend at the tables.  Poker chips now rely on silver to tell all.  Spend enough time and enough money and silver can even comp you dinner and a room. 

This is the area of growing silver consumption I find most intriguing - nanotechnolgy.  Let me just say, that in microscopic form, silver reacts in a unique manner to light, electricity even odor.  Yes, silver is now being woven into sports apparel to help in the control of odor by killing the bacteria that causes odor.  Sound familiar? 

These reactive qualities are also what enables shippers of goods to track packages.  Yup!  Without silver you may not be able to get that online proof of delivery.  RFID tags are made with silver.  Think of the billions of tags consumed every day.  Heck, pretty soon we may even find it in our food and eating it.

Herein lies trillions of nano-reasons silver could become more valuable than gold.  Just try to imagine how tough it will be to reclaim microscopic amounts of silver from discarded clothing, used bandages, trashed RFID tags . . . oh and let's not forget -- Tomamhawk missiles that scatter microbits of silver all over the desert.

For the latest gold and silver news and real time pricing visit learcapital.com regularly.

  

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