Throughout history, many different things have been used as a form of money; such as stones, salt, shells and beads. From the very beginning, silver and gold have displaced all other mediums of exchange. The invention of the printing press brought with it paper currency. No government has ever successfully substituted paper for real money, because no government can print silver. Normally, silver prices are anticipatory rather than reactionary. Once the forces of the inflation index begin to be felt, investors will buy into the market to make sure they are in position before the general public. Their buying will drive prices upward.

Silver Supply:
is misunderstood, as is any rare, strategic natural resource. For many years, the world has used more silver than it has produced, yet most people assume that silver is abundant.This was certainly the case before the industrial revolution. Since then, we've had a dramatic shift in perception, just as the mainstream investor begins to catch on. Currently,  the amount of silver mined each year is far less than the amount used. Industrial users will soon begin to feel the pinch of longer delivery times. When this happens, it will have a positive impact on silver prices.

Demand:
Silver is an industrial commodity. The basic scientific properties of silver make it a candidate for use in an ever-growing variety of devices and applications, from computer chips to solar power generators.Because silver is an industrial commodity, it is a candidate for an industrial shortage. The world’s industrial consumers hold little in the way of silver inventories, thanks to just-in-time inventory and production practices.New mining production is not stimulated by silver prices. Mining production is fairly fixed because over 70% of silver production comes as a byproduct to other types of mining, such as copper, lead and zinc. The mining industry is simply incapable of keeping up with the current demand for silver.Given that we already have a widespread retail silver shortage, a wholesale shortage is likely as well. When industrial users face delays in silver shipments they will panic and attempt to build inventories all at once.

The Outlook:
This situation unique to silver—it does not apply to gold.In the current financial crisis, there is a profound and very powerful advantage to silver being an industrial commodity. The mainstream has forgotten about silver as a monetary metal. The new generation, and possibly even you, has only a fleeting association between silver and value.