Why Silver Can Be Used In The Industrial Industry
Silver can be consider as one of the most all-around metals reachable. Indeed silver is a white, shiny and soft metal which is often found in its natural form as a mixture with other minerals and metals. Thanks to its properties, silver can be consider as a multi-function produce because it can be used in the industrial sector and also as an asset. Indeed, silver has a monetary value when paper money is no longer of value. For example, in period of inflation or deflation, the value of silver can be used as a monetary value. So this monetary value allows silver to be traded on the market of money.
Therefore, its consumption can be classified into the jewellery, investment and industrial sectors. Over the past, silver has been used as: vessel, …show more content…
Indeed, silver can be categorized as a normal good with a positive income elasticity of demand because it belongs to luxury good. It means that when people income rise the demand rise as well. So it drag silver away the problem of scarcity. Moreover there is no many substitute goods for silver as other industrials products have. We can illustrate this argument with an example. Figure out that you want to buy a mobile phone, there are plenty models, brands, and functionality for this products but in the silver markets it is more complicated. Therefore we can consider silver as an inelastic demand. Indeed, due to the scarcity of this good and to the rarity of substitute good, “any change will cause the quantity demanded to change by a proportionately smaller …show more content…
In recent years, the silver market has faced to a shortage since fabrication demand surpassed mine production. As a consequence, the fundamental value of silver increased a lot as it represent a scare resources. Indeed, between 2004 and 2013 total demand for silver increase from 917 Moz to 1,081 Moz (CRU data). As a result, the fundamental value of silver increased a lot as it represent a scare resources (watch the graph in 2011). And a grow up of silver price impact other markets such as market of medicine, technology…As a consequence, we can underline the fact that silver belong to the interdependence of market since we can observe in 2011-2012 the domino’s effect. However, the silver’s price can also be affected by factors like changing values of paper currencies, inflation, and fluctuations in deficits and interest rates because of the versatility of silver. The fluctuations in prices are also depend on how much of other metals are produced, the development of technology, and the population (decrease,
Therefore, its consumption can be classified into the jewellery, investment and industrial sectors. Over the past, silver has been used as: vessel, …show more content…
Indeed, silver can be categorized as a normal good with a positive income elasticity of demand because it belongs to luxury good. It means that when people income rise the demand rise as well. So it drag silver away the problem of scarcity. Moreover there is no many substitute goods for silver as other industrials products have. We can illustrate this argument with an example. Figure out that you want to buy a mobile phone, there are plenty models, brands, and functionality for this products but in the silver markets it is more complicated. Therefore we can consider silver as an inelastic demand. Indeed, due to the scarcity of this good and to the rarity of substitute good, “any change will cause the quantity demanded to change by a proportionately smaller …show more content…
In recent years, the silver market has faced to a shortage since fabrication demand surpassed mine production. As a consequence, the fundamental value of silver increased a lot as it represent a scare resources. Indeed, between 2004 and 2013 total demand for silver increase from 917 Moz to 1,081 Moz (CRU data). As a result, the fundamental value of silver increased a lot as it represent a scare resources (watch the graph in 2011). And a grow up of silver price impact other markets such as market of medicine, technology…As a consequence, we can underline the fact that silver belong to the interdependence of market since we can observe in 2011-2012 the domino’s effect. However, the silver’s price can also be affected by factors like changing values of paper currencies, inflation, and fluctuations in deficits and interest rates because of the versatility of silver. The fluctuations in prices are also depend on how much of other metals are produced, the development of technology, and the population (decrease,