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Silver Wheaton Corp. Message Board

  • depeche_yankees depeche_yankees Feb 21, 2011 3:40 PM Flag

    At what $$$ point does silver lose its industrial base?

    Let's play fantasy, and imagine that silver was $100 an oz. wouldn't the industrial base look for a different (cheaper) alternative. And let's start with this sticking point: do not try to say there is "no" alternative to silver. Everything has an alternative. I saw it in a movie

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    • The answer is of course industrial users would be looking for alternatives. They always do. Makes one think of all the palladum v. platinum in cat converters talk out of Japan in the 90s.

      For most silver applications they use such small quantities that it still would not represent a significant portion of the good's overall final costs. Silver is such a good conductor of electricity, kills germs without causing pollution in filtration, and is really hard to beat in mirrored items that its industrial uses are probably pretty secure.

      All that said, I think you are looking at this backwards. If it were to go to $100 the thing to be watching is the suppy side. I remember when it got over $30/oz briefly during my youth. Man were there some long lines as people cashed in all their junk.

      I suspect there would be another great surge of recycled materials hit the markets if silver spiked to those levels and new mine development would be fast tracked as the banks fast tracked funding for what are currently (with the POS at $30/oz) more marginal resources. The old saying in the commodities markets is "there is no better cure for high prices than high prices".
      Not to worry, there are lots of potential profits between here and there.

      Best of luck...

    • Forget whatever you saw in a movie. Hollywood is all make believe. A few products will find replacements but that will not effect the POS. It is all an investment bubble now driven by fear and greed. So the real question is, "How high can silver go before the pop?" It may be a couple of years before the pop but it is inevitable.

    • Alternative dosen't mean the same results,it may be close,but never the same,or someone would of had it out on the maket already,
      There is no element exactlly the same,this is the point and why it is also concidered the most precious of rear earths besides a monetary vaLUE AND SO ON. JMO jIM

    • no, that wouldn't happen and here is the reason.

      Silver is such a small market and the amount of silver used in things such as electronics is so smart that the price isn't really an issue.

      Having said that, what you will see are those industrial users will just start to stock pile as much as they can before the price gets that out of control.

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