FP Answers: Is silver a good investment?

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The price of silver is volatile and often affected by sudden economic slowdowns. Find out more about silver as an investment

In an increasingly complex world, the Financial Post should be the first place you look for answers. Our

Silver has always been used to manufacture a variety of items from jewelry and batteries to microcircuits and medical equipment, but its growing importance as a critical metal in solar-energy production and electric-vehicle assembly may have a significant effect on its future performance and outlook, investment advisers say.

Demand for silver could substantially rise in the coming years after United States President Joe Biden signed into law the, which includes billions of dollars in tax credits and grants for companies to manufacture solar panels and clean vehicles. Silver closed at US$19.28 an ounce on Thursday, down US$3.66, or about 15 per cent, over the past year.

While silver is far cheaper than gold, which is currently around US$1,790 an ounce, it is more thinly traded and, therefore, more illiquid and volatile as an investment.

 

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Obviously. The demand is going up exponentially because of its use in electronics, Yet the supply is going down..... Doesn't take a genius to figure out that one.

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