Long been regarded as a store of value, precious metals have been the second most worthy option after currency , as being marked as creditable trading matter, having the qualities of being the best investment for protecting wealth. The best part of this investment is that despite of any bearish impacts on the investment values, there is always a good demand for the silvery mineral. Not only is the use of the metal most liked by the jewellery industry, but it has found its way in most of the industrial products.
The renewable energy industry is the latest industry which has found the use of this metal as its most important raw material in the making of photovoltaic plates by using the photovoltaic technology. This technology is the back bone of the solar sector leading to an unexpected increase in demand for the metal. This unforeseen demand plays a very beneficial impact on the prices of the metal. The investing in silver too benefits silently, giving the investors a fair chance of profitable returns associated with this investment. Today 5.6% amount of consumption of silver for industrial use is registered to be related with the solar energy sector, in making the solar panels. The major economies that contribute to this demand are the Japanese and Chinese economies. China's State Council has announced a 35 gig watts capacity by the end of 2015 to help satisfy the nation's State Grid load which is facing an increasing burden from the flourishing industry sector. Japan is another rocking contributor to the sudden surge in the demand for silver, which has started to show an increasing trend since the start of the millennium. They are expected to plan an increase in the solar generation capacity by about 5.3%. The horrible disaster of the nuclear plant in Japan has further strengthened the will of the government to focus on more safe options to take care of their never ending demands for energy. The start on the millennium has brought about with it the urgent requirement for the global economies to change their strategies of growth by the use of safer and environment friendly options. Though a lot has been emphasized, very little has been done in this matter. Assuming the number of projects still in the pipeline, the silver market as a whole should bare fruits in the fore future. Another positive factor for the Silver ETF is that once the metal is used in the making of solar panels, it cannot be used or recycled again. So old solar panels are of no use, and the demand for the metal in the form of raw materials in making of the panels is only expected to rise in the future.
According to the Silver Institute, a quick breakdown of the capacity for generating 1 megawatt of electricity requires up to 2.8 million ounces of silver. So if we put together the planned increase in the solar generation capacity for China and Japan we find an anticipated and planned increase of 27 gig watts of solar power. For the generation of this figure, 91 million ounces of silver would be required to make it possible for the projects to be complete! This itself should bring a drastic bumper increase in the demand for the silver metal, and a heavy inflow of investments towards the Silver miner ETF. This favors the investments in the precious metal mining industry and helps the industry to focus on the expansion of the mining and exploration, possessing and refining of the silver investment ready to face a new challenge ahead.
Global X Silver Miners ETF [SIL] holds the stocks of companies belonging to this Silver miner ETF , which are engaged in mining, refining and exploration work of the metal. This Silver ETF commenced in April 2009, and charges its investors an annual charge of 0.65 basis points. Silver Wheaton Corp., Fresnillo Plc, Industrias Penoles Sab De Cv, Tahoe Res Inc, and Coeur Mining Inc. are the top five asset holders of the fund.