Why is silver valuable??

bushmaster8 · February 4, 2011 4:22AM

A few weeks back QDB's column in CW was a statement that he felt due to the demise of silver for photos, the only other BIG use was for commemorative coinage.

QDB more or less implied that the current silver bubble was akin to tulipmania.

I figured that column would have caused a stir here, but a search for "QDB" or "Bowers" is unfruitful.

So where is the value?

guitarwes · February 4, 2011 4:32AM

Because it's used in industry and it's hyped to be valuable. Same for gold. Value is in the eye of the beholder.

I have alot of things that are valuable but are not seen as really "valuable" until you don't have 'em and you need 'em. (i.e. plows, shovel, screws, pins, hammer, fertilizer, seeds, etc)

Meltdown · February 4, 2011 4:36AM

Aside from roughly 2000 years in a monetary roll, it still has many other industrial uses.
It's always been an excellent conduit of electricity. Also, as I understand it, a major component in solar heating.

Weiss · February 4, 2011 4:41AM

http://en.wikipedia.org/wiki/Silver#Other_industrial_and_commercial_applications

PerryHall · February 4, 2011 5:17AM

As gold goes up in value, the use of silver in jewelry (which is already high) will greatly increase because most women will be priced out of the gold jewelry market.

TooSnappy · February 4, 2011 12:01PM

sorry I dont have any links, but I very recently have read a few articles about silvers uses. in the past gold being such a good conductor has been used in alot of electronic devices. though now with gold being so expensive and silver being a good conductor as well, it is being used more and more.

I read a few articles about silver being used in the newest devices such as the iphones and ipads. if I remember correctly; china being the top producer of these products, has been aquiring alot of silver for this purpose.

anybody else read anything on this?

57loaded · February 4, 2011 2:06PM

<< As gold goes up in value, the use of silver in jewelry (which is already high) will greatly increase because most women will be priced out of the gold jewelry market. >>

hey (real) men buy, too!

JamesMurray · February 4, 2011 3:10PM

I read some time ago that a lot of the modern warfare items use a lot of silver.The item i read was saying a particular type bomb was like 15oz in silver for each one and they use thousands.

1jester · February 4, 2011 4:37PM

Silver is a better conductor of electricity than gold. I believe the only reason gold is sometimes preferred in this application is that it is also inert and not subject to corrosion.

Justacommeman · February 5, 2011 1:13AM

The reason you didn't see anything about QDB and silver is because probably nobody cares. Should we? I dont remember him saying to buy silver at $4 or $8 or $12 and make a huge score when it hits $25 or $30. Now all of a sudden he is an expert on silver and is calling it a bubble? No one has been using film like for ten years now and that's his basis? Did he just realize this? Did he just wake up from a decade long nap? Really? MJ

Justacommeman · February 5, 2011 1:14AM

The value of silver is that people want it. When they want it less the price will fall. MJ

CaptHenway · February 5, 2011 1:22AM

I recall reading an article about silver being used in a new generation of water filtration devices like the kind you put on your kitchen faucet.
TD

DuCrozat · February 5, 2011 2:29AM

Medical value:

Medical uses of silver

Just don't go overboard:

Stan Jones

"Jones developed argyria, which permanently turned his skin a blue-grey color, by consuming home-made colloidal silver, which he made due to fears the Year 2000 problem would make antibiotics unavailable. " (Source: Wikipedia)

PawPaul · February 5, 2011 6:10AM

<< Silver is a better conductor of electricity than gold. I believe the only reason gold is sometimes preferred in this application is that it is also inert and not subject to corrosion.

>>

I always believed pure gold out conducted pure silver ...........

Gold can be pulled to a super fine wire ..........

other then the obvious , I think silver is just a poor mans gold - and it's value is high because people want to buy it ......I think that's the biggest reason it has value

DuCrozat · February 5, 2011 7:28AM

<< 

<< Silver is a better conductor of electricity than gold. I believe the only reason gold is sometimes preferred in this application is that it is also inert and not subject to corrosion.

>>

I always believed pure gold out conducted pure silver ...........

Gold can be pulled to a super fine wire ..........

other then the obvious , I think silver is just a poor mans gold - and it's value is high because people want to buy it ......I think that's the biggest reason it has value >>

Then is gold the poor man's platinum?

57loaded · February 5, 2011 7:28AM

silver has least resistance of any metal
copper is second
gold third if you don't count annealed copper

aluminum and tungsten are down there

i wonder if you could do a simpler test on gold bars to test their conductivity to measure their resistance and therefore see if any are actually tungsten in gold cloothing?

CaptHenway · February 5, 2011 9:59AM

<< 

<< 

<< Silver is a better conductor of electricity than gold. I believe the only reason gold is sometimes preferred in this application is that it is also inert and not subject to corrosion.

>>

I always believed pure gold out conducted pure silver ...........

Gold can be pulled to a super fine wire ..........

other then the obvious , I think silver is just a poor mans gold - and it's value is high because people want to buy it ......I think that's the biggest reason it has value >>

And platinum is the poor man's rhodium!!!!!!

Then is gold the poor man's platinum? >>

PerryHall · February 5, 2011 10:03AM

<< Then is gold the poor man's platinum? >>

Is copper the poor man's silver?

fastrudy · February 5, 2011 10:42AM

Is plastic a poor man's copper?

fivecents · February 5, 2011 11:09AM

Is cardboard the poor man's plastic?

pendragon1998 · February 5, 2011 6:45PM

Is squirrel hide a poor man's cardboard?

BlackBeard · February 5, 2011 10:45PM

<< Is cardboard the poor man's plastic? >>

No, cardboard is the poor man's plywood.

carew4me · February 5, 2011 11:01PM

Duct tape is a poor mans everything

fastrudy · February 5, 2011 11:31PM

Duct tape is the poor man's Bondo™

derryb · February 6, 2011 6:53AM

where is the value in any medium of exchange.

SeaEagleCoins · February 7, 2011 12:44AM

<< where is the value in any medium of exchange. >>

A hungry person values food

A thirsty person values water

The value of any commodity, other than the basic need commodities... is based on the mutual agreement of all participating "traders" of said commodity... and that agreement is based on trust... as long as the trust holds, the value holds... if the trust is broken... so is the value...

A person will place "value" on anything that will ensure their ability to have their basic needs met... once that person feels assured that those needs are met and will continue to be met... they will often then look for "other stuff" to occupy their time and attention... and in turn, begin to place value on that "other stuff" ...

...this is usually when the real trouble begins...

guitarwes · February 7, 2011 10:58PM

<< 

<< where is the value in any medium of exchange. >>

A hungry person values food

A thirsty person values water

The value of any commodity, other than the basic need commodities... is based on the mutual agreement of all participating "traders" of said commodity... and that agreement is based on trust... as long as the trust holds, the value holds... if the trust is broken... so is the value...

A person will place "value" on anything that will ensure their ability to have their basic needs met... once that person feels assured that those needs are met and will continue to be met... they will often then look for "other stuff" to occupy their time and attention... and in turn, begin to place value on that "other stuff" ...

...this is usually when the real trouble begins... >>

great answer.

Durexmetals · February 8, 2011 12:20PM

The demand for silver is high and production is low. = Higher Prices.

40% of silvers demand is industrial

Healthcare, water filtration, etc.

In fact your computer, smart phone, telephone, etc. contains silver. The Investment and coin sector only makes up for 8% of the overall demand.

Tulipmania....

He must be talking about the dollar. The dollar has had some value for 200 plus years, silver has had value for over 3,000...

Which do you trust most?

DuCrozat · February 8, 2011 12:34PM

<< The demand for silver is high and production is low. = Higher Prices.

40% of silvers demand is industrial

Healthcare, water filtration, etc.

In fact your computer, smart phone, telephone, etc. contains silver. The Investment and coin sector only makes up for 8% of the overall demand.

Tulipmania....

He must be talking about the dollar. The dollar has had some value for 200 plus years, silver has had value for over 3,000...

Which do you trust most? >>

"The dollar has had some "continuously declining" value for 200 plus years, silver has had value for over 3,000..."

Sorry for the edit; just had to.

cladking · February 20, 2011 9:46AM

A far better question is why isn't silver far more valuable. There is less of it than
gold, it is critical to the operation of the modern economy and we can't go back-
ward, the supply is price inelastic, and worst of all the demand is price inelastic.

It is nothing but inertia holding silver to such absurdly low levels and some day
demand will feed on itself and alter the pricing structure "forever".

cladking · February 20, 2011 9:48AM

<< 
He must be talking about the dollar. The dollar has had some value for 200 plus years, silver has had value for over 3,000...
>>

The pyramid builders valued silver even more highly than gold 4800 years ago.

DoubleEagle59 · February 20, 2011 10:00AM

<< A few weeks back QDB's column in CW was a statement that he felt due to the demise of silver for photos, the only other BIG use was for commemorative coinage.

QDB more or less implied that the current silver bubble was akin to tulipmania.

I figured that column would have caused a stir here, but a search for "QDB" or "Bowers" is unfruitful.

So where is the value? >>

With no disrespects and only in regards to his Silver viewpoints, "QDB" is stuck in the '70's.

veryfine · February 21, 2011 3:08AM

I am reading the article now, and it also states:

"Unlike gold, which has a world monetary value, buying silver as a hedge against the devaluation of the dollar has little logic in view of the storage problems.
Take heed that in 2008 the market price for an ounce of platinum ranged from $774 to $2,252. Similar to silver, platinum is not a monetary metal.
The last time platinum coins were produced for circulation (in Russia) was 1845.
The point: Try to avoid investment sensations, consider the situation carefully, and observe the lessons of history."

This above quote is from the "Joys of Collecting" article by Q. David Bowers in Coin World, Feb 7th, 2011.

I am not as sophisticated a precious metals investor as many of you are, but I did find this article very interesting and thought provoking. How would you address the "world monetary value" argument?

bushmaster8 · February 24, 2011 11:33PM

Well, you all only convinced me halfway.

Today I converted half of my silver to gold. (Thereby divesting myself of all my 40% Au in the process

)

pitboss · February 24, 2011 11:36PM

Well good, that should make silver go through the roof.

Somebody had to do it.

fiveNdime · March 1, 2011 5:39AM

<< Duct tape is a poor mans everything >>

silence is golden.
duct tape is islver.

georgiacop50 · June 28, 2012 4:37AM

Maybe QDB is smarter than all that?

Just sayin....

Why is silver valuable??

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