General information (Silver)

History
Silver is the second most popular metal after gold. Silver's history is long. The first evidence of silver mining dates back to 3000 B.C., in Turkey and Greece, according to the RSC. Ancient people even figured out how to refine silver. According to the experts, the total proven reserves of this precious metal in the world now reaches 600 thousand tons. Each year around 20-22 thousand tons of silver are mined in the world. As well as gold, silver is one of the oldest commodities traded on the exchange.

Silver has always played the second role inferior to another precious metal – gold, but nonetheless it deserves to be a good look. In daily life it meets great demand in various spheres – due to its heat conduction features it is used in electricity, being the best light reflector – it is used in mirror production industry, sayin nothing about jewellery.

As an investment asset silver has always been in demand and the last year tendency proves it. According to World Silver Survey 2019 published by the Silver Institute, physical demand on silver increased 4% in 2018 and investment in silver bars and coins grew by an impressive 20% last year.

The statistics shows that 2019 was an incredible year for precious metals quotations. The investors note that silver picked up the universal for precious metals last year upward trend and demonstrated the slight growth in price as well.

Physical features

• Pure silver is the best conductor of heat and electricity therefore is widely used in electronics and batteries production
• It's also the best reflector of visible light, which is why it is commonly used to make mirrors
• Silver alloys are used in jewellery and tableware
• Silver has antimicrobial properties, silver thread can be woven into clothing

Silver as an investment asset

The advantages of silver:

• Currencies tend to fall against silver;
• Including silver in investment portfolio is an effective way to diversify assets.

How can I invest in silver?

• Industrial application;
• Jewellery;
• Purchase of physical silver (bars, coins and medals);
• Purchase of ETF on Silver;
• Opening of unallocated bullion account;
• Buying derivatives on silver;

The Moscow Exchange has Deliverable Silver futures

Why is investing in deliverable futures the most beneficial?

1) High liquidity in futures;

2) It is not necessary to keep the contract until settlement – you may always sell it;

3) The buyer does not bear any costs associated with the storage of metal, as it happens in the case with physical gold or silver;

4) The effect of leverage – buying a futures you do not have to pay the whole amount – only Initial Margin is needed.