Silver extends rally, demand rises on physical demand

Sydney-Australia (Feb 8)  Silver continues to shine with prices rising 2.9% this year as physical demand increased amidst turmoil in emerging markets, slowing economic growth and stimulus cuts by the U.S. Federal Reserve.
   
Futures for March delivery advanced 0.6 percent to settle at $19.928 an ounce at 1:38 p.m. yesterday on the Comex in New York, bringing the rebound since hitting a 34 month low on 28 June 2013 up to 9.7%.

Sales of coins by the U.S. Mint almost quadrupled in January.

An analyst noted that people were still looking for safe-haven assets with traders starting to reposition based on concerns over emerging-market growth.

Gold/silver ratio

The gold/silver ratio – which measures the relative strength of the two metals – had earlier touched a two week low beneath 62.5 as silver prices rose faster than gold.
 
Trading some 60% below its peak of spring 2011, and after "evolving in a flat range for 2 months" according to technical analysis from Societe Generale, the silver price "could be in the process of forming a double-bottom pattern."

Silver continues rise

For the past three-decades the world has used up more silver than has been mined.

This is due to the fact that no other metal has its combined strength, malleability and ductility, or facilitates electrical and thermal conductivity as well, or can reflect light and endure such extreme temperature changes, according to The Silver Institute.

Uses include silver-coated bearings that are key for the performance and safety of jet engines and silver sulfadiazine for the treatment of severe burns to promote healing and reduce infection.

Silver is also widely used as a chemical catalyst, reflectants, circuitry, superconductors, brazing and soldering.

With the globe's insatiable appetite for new technology, and of course the emerging middle classes, these are some silver companies listed on the ASX.