You hear the constant rumblings of “wars and rumors of wars.” It seems global unrest and potential conflict lurk around every corner. While conflict and apocalyptic fears have always fueled precious metals demand among the populace in search of safe haven assets, there seems to exist an even larger demand for silver just outside of view.
While we know much about silver’s industrial demand from the electronics, solar, and healthcare fields, there exists another industry that may be an ever-increasing consumer of the world’s most conductive metal: the defense industry. The immense demand for silver in the defense industry goes largely unreported and intentionally so.
It turns out this is nothing new. Take the Manhattan Project for example: a U.S. top-secret research and development program, during World War II, resulting in the production of the world’s first atomic bombs. The project was loaned over 14,000 tons of silver from the nation’s stockpile. According to a recent article published by Kitco, “In complete secrecy, the United States removed 430 million ounces of silver from the West Point Bullion Depository to turn 1,000-ounce silver bars into cylindrical billets and wound them onto magnetic coils.” Wow! At today’s price of silver, that is nearly 1 BILLION dollars’ worth of demand! Additionally, Kitco’s report, citing Andy Schectman, states that each tomahawk cruise missile requires 500 ounces of silver. That’s a lot of silver!
But what does that mean for the price of silver? Is the precious metal heading for an all-time high in the not-too-distant future? Do the news headlines and global unrest affect the precious metal market even more than we understand? Could this secret demand potentially drive demand even more and take future prices to unprecedented levels?
As “wars and rumors of wars” continue to proliferate the headlines, we would be wise to consider silver’s application in creating modern weapons of war and its uses in military and aerospace technology. There is a high – and hidden demand for silver that continues to increase as technology increases. These trends, as well as geopolitical tensions, will have an impact on the market and will greatly affect supply and demand of silver.
Yet another reason to own silver – this still affordable and critically important precious metal.
Read the complete article from Kitco News.
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