SILVER PRICE HISTORY

The annual silver price, led by continued strong investor and industrial applications demand, averaged an impressive $13.38 in 2007. This result represented a 16% price increase over 2006, and on a percentage basis was stronger than that enjoyed by gold, platinum and palladium last year. When looking at the 2007 silver price, the white metal posted a very solid performance to averages not seen since 1980. A key development in silvers recent fortune has been the pronounced shift in investor behavior, witnessed by the continued presence of investors on the demand side of the equation since 2004. During the first half of 2008, investors drove the silver price up above the $20/oz mark (a high of $20.92 oz was recorded in March) against a backdrop of generally firm fabrication demand. The second half of 2008 was a different story as the economic outlook deteriorated rapidly, and silver, as well as other metal prices, slumped. However, silvers price in the first third of 2009 recovered a good part of the lost ground. Silver posted an average price of $14.67 in 2009, the second highest average since the high reached in 1980. Strong gains in investment and a recovery in demand later in the year, were the prime reasons for the 53% intra-year rise. Silver posted an average price of $20.19 in 2010, a level only surpassed in 1980, and a marked increase over the $14.67 average price in 2009. Strong silver investment in 2011 paved the way to a record annual average silver price in a year marked by steep price volatility while retail silver investment demand for both physical bullion bars and coins medals surged to record levels. Silver posted an annual average price of $35.12 in 2011, more than double the $14.67 annual average price achieved in 2009. This offers further testament to investors enthusiasm for the metal as silver World Investment (including implied net investment, silver bars and coins medals) produced another historic high total last year of 282.2 million ounces (Moz), the equivalent of approximately $10 billion on a net basis, itself a record high.

SILVER PRICE HISTORY

The annual silver price, led by continued strong investor and industrial applications demand, averaged an impressive $13.38 in 2007. This result represented a 16% price increase over 2006, and on a percentage basis was stronger than that enjoyed by gold, platinum and palladium last year. When looking at the 2007 silver price, the white metal posted a very solid performance to averages not seen since 1980. A key development in silver’s recent fortune has been the pronounced shift in investor behavior, witnessed by the continued presence of investors on the demand side of the equation since 2004.During the first half of 2008, investors drove the silver price up above the $20/oz mark (a high of $20.92 oz was recorded in March) against a backdrop of generally firm fabrication demand. The second half of 2008 was a different story as the economic outlook deteriorated rapidly, and silver, as well as other metal prices, slumped. However, silver’s price in the first third of 2009 recovered a good part of the lost ground. Silver posted an average price of $14.67 in 2009, the second highest average since the high reached in 1980. Strong gains in investment and a recovery in demand later in the year, were the prime reasons for the 53% intra-year rise. Silver posted an average price of $20.19 in 2010, a level only surpassed in 1980, and a marked increase over the $14.67 average price in 2009. Strong silver investment in 2011 paved the way to a record annual average silver price in a year marked by steep price volatility while retail silver investment demand for both physical bullion bars and coins & medals surged to record levels. Silver posted an annual average price of $35.12 in 2011, more than double the $14.67 annual average price achieved in 2009. This offers further testament to investors’ enthusiasm for the metal as silver World Investment (including implied net investment, silver bars and coins & medals) produced another historic high total last year of 282.2 million ounces (Moz), the equivalent of approximately $10 billion on a net basis, itself a record high.

SILVER IN INDUSTRY

From non-corroding electrical switches to chemical-producing catalysts, silver is an essential component in nearly every industry. Its unique elemental properties make it impossible to substitute and its uses span almost every sector of industrial application. Electric power, the most important source of power in global industry, depends on the distribution of electric power depends upon silver contacts in switches and circuit breakers. Silver contacts in membrane switch panels are now standard in control panels for machinery, chemical industry processes, railway traffic controls and elevator buttons. Silver In Industry Silver oxide and zinc batteries have twice the capacity of lead-acid batteries, making them the power source of choice for television and film crews, aircraft and submersibles. Unlike other substances, silver performs well at high temperatures. For example, silver batteries are the only kind that can function at the high temperatures found deep in oil wells. Silver In Industry Another important use is in radiography, the use of photo film to evaluate the internal condition of materials. This technique is key for the discovery of structural flaws. Source: The Silver Institute

SILVER IN TECHNOLOGY

Silver’s use in technology has greatly expanded its role in the global silver market in recent years. A number of factors have played a crucial factor in this growth, not the least of which is silver’s unique technical proficiency, which makes it suitable for a wide range of applications while also limiting the ability of industrial users to shift in favor less-costly alternatives. Silver is one of the best electrical and thermal conductors, which makes it ideal for a variety of electrical end uses, including switches, multi-layer ceramic capacitors, conductive adhesives, contacts and in silvered film in electrically heated automobile windshields. Silver is also used as a coating material for optical data-storage media, including DVDs. Silver is employed as a catalyst and used in brazing and soldering as well. It is also incorporated into health and medicinal applications given its natural antibacterial qualities. From its role as a conductor in nearly all of our appliances to its life-saving qualities in operating rooms around the world, the uses of silver in technology are many and far-reaching. Did you know that NASA’s Magellan spacecraft relied on silver-coated quartz tiles to protect it from solar radiation during a four-year scientific mission? Or that the world’s strongest alloy, made of silver and aluminum, is an essential component of the Air Force C17 transport and the Army’s Apache helicopter? From flight to space travel, silver is one substance that helps us continue to raise the bar on our capabilities. You’ll find silver in many of the electronic devices we use today, including cell phones, plasma- display panel televisions, personal computers and laptops. Silver is also incorporated into button batteries, water-purification systems, automobiles, and it is a component of the growing photo-voltaic industry, to name just a few of its applications. High temperature semiconductors, which will revolutionize the transmission and storage of electrical power and the efficiency of motors and most other electrical equipment, rely upon silver to operate. As do many chemical processes including the production of polyester fabrics, hydraulics, engine antifreeze and flexible plastics. When we take a broad look at the latest technological advances and the most important ones of the last century, we see the role of silver in nearly every major field of advancement.

SILVER IN CARS

Silver stays with you on the road, too. Every time you drive a car or ride in a motor vehicle, you are taking advantage of a number of the myriad uses of this element. Over 36 million ounces of silver are used annually in automobiles. Every electrical action in a modern car is activated with silver coated contacts. Basic functions such as starting the engine, opening power windows, adjusting power seats and closing a power trunk are all activated using a silver membrane switch Another feature that is very important to our driving safety is the silver-ceramic lines fired into the rear window. The heat generated by these conductive paths is sufficient to clear the rear window of frost and ice. Finally, the active ingredient in antifreeze is ethylene oxide, which is a compound made from silver.

SILVER PRODUCTION

Silver mine production rose for the ninth successive year in 2011, to a fresh record of 761.6 Moz (23,689 t). Production from primary silver mines fell modestly due to lower processed grades and one-off disruptions at several large operations, including the world’s two largest primary mines, Cannington and Fresnillo. These losses prevailed over production gains originating from a handful of new mines ramping up. However, growth was seen for silver produced as a by-product of gold and lead/zinc mining. Top 10 Silver Producing Countries in 2011