Silver can only collapse along China

(BullionStreet):Silver is one of the major topics of talks during Xi Jinping’s recent visit to Mexico as China’s quest to gather silver from the Americas continued in to the 500 th year.

China began its silver trade with the Americas, especially Mexico and Peru in the sixteenth century. China was buying nearly 40% of all silver produced in the world then.

Ancient China’s economy was based entirely on silver. Unlike any other nation in history, silver was highly prized by the succession of Chinese dynasties and was the major trade item for thousands of years with the outside world.

It’s not that far the Chinese government, that once forbade ownership of precious metals, has lifted the ban and China has introduced silver bullion bars which the middle class are urged to invest in.

Today, China wants silver badly and for more or less coincidental geological reasons apart from mega industrial requirements to satisfy its huge population.

Though, China is world’s largest gold producer it has very little in the way of precious metals and virtually no silver at all.

China is one of the world’s largest manufacturer and exporter and most of the sophisticated items China produced required silver to be used in more or less way.

Analysts said China set to produce lot of items that required highest electrical and thermal conductivity and silver is the best metal available. Silver has the potential to store more power in a small amount of space that any other metal that is in existence. Electrical connections that involve silver have the capacity to ignite power needed at a rapid speed.

China remains the major supporter of the white metal as fabrication demand for silver in China has increased by more than 82.4 Moz in the past decade to 159.5 Moz.

During the same period, industrial silver fabrication in China has experienced an almost uninterrupted period of growth, posting a 135 percent increase.

Most analysts are agreed on one point, as long as China remained a strong economy with lot of manufacturing, silver is the best investment and will surpass gold soon as the number one choice among investors.

They added that the price of silver will increase as long as US and Euro zone authorities continues to print money, resulting in weakness to dollar and the euro,giving away to inflation in the long term.

It is the huge industrial demand that is key to silver and the future for owning and investing in silver has unlimited potential for investors.

And above all, the white metal is affordable for an average investor who may find it difficult to access to gold all the time.

So, as long as China remained a major manufacturing economy, Silver has nothing to fear as it can only collapse with the dragon nation which is highly unlikely in at least a 100 years.