Mention precious metals and most of the time, the very first thing that comes to people’s mind is gold. But in fact, the role of silver has been pivotal to building civilisation. It goes back 5,000 years to Anatolia (Turkey), where people used it to trade with and help build empires.
As time passed, Europe became the centre of silver production as new silver mines were discovered.
But no event in silver’s history is as important as the discovery of the “New World” in 1492.
When Christopher Columbus set sail across the Atlantic to Spain, he accidently discovered the “New World”.
The America’s GREAT “Silver Rush”
The discovery of massive deposits of silver in South America set in motion large-scale silver production and a “silver rush”, which transformed economies across large parts of South, Central and North America.
From the 1500s to the 1800s, Bolivia, Mexico and Peru accounted for 85% of the world’s silver production.
From there, many other countries like the US discovered silver mines and started production. In fact, in the 1870s, silver production hit 40 to 80 million troy ounces a year. But that number 10x higher in modern times.
At end of 2023, silver production totalled 831 million ounces. However, production has been in decline for nearly a decade when it peaked around 900 million ounces in 2016.
Even after 5,000 years, the white metal is used in almost everything from jewellery to currency to appliances. And that’s just the tip of the iceberg.
Modern world tech requires old world solutions…
Because of silver’s unmatched electrical conductivity, thermal efficiency and optical reflectivity, it’s become one of the most crucial metals in the evolution of tech.
Think electronics, including smartphones, tablets, computers, and televisions…
Biomedical applications (including next-generation anti-superbug antibiotics)
Semiconductors, electric vehicles (EVs), solar and 5G devices.
And more recently, Battery Technology. Samsung’s new silver solid-state battery promises an impressive 800km range and a charge time of just nine minutes – addressing two major hurdles in EV adoption. And it boasts a lifespan of 20 years.
So, demand for silver is not slowing anytime soon. Meanwhile, supply will remain under pressure. That’s why global silver deficit will rise 17% higher to 215.3 million ounces in 2024, the second highest on record, according to the Silver Institute.
Silver – An underrated investment too…
As it has grown popular, silver has become a great way for investors and even traders to make money. Whether its silver miners, silver exchanged-traded notes/funds (ETNs and ETFs), or physical silver, there are many ways for investors to own the precious metal.
And doing so over the past five years would’ve been lucrative – yet it’s often overlooked by many investors.
Look at the performance of the Absa NewWave Silver – an ETN that tracks spot silver price in rands – below…
Other than gold, it’s outperformed JSE Top 40, top 10 largest JSE resource stocks and SA bonds over one, three and five years.
And it’s already up +7% in 2025.
With some analysts predicting $40 silver price in 2025, there could be much more upside to come. To learn more about ETF trading and other income investments like this make sure you join our Real Wealth community!
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