Continued from May 31, 2007.

Another immportant factor as towhy silver is likely to outperform is increasing industrial demand. Silver has a number of unique physical properties including its strength, excellent malleability and ductility, its unparrelled electrical and thermal conductivity, its sensitivity to, and high reflectance of light and the ability to endure extreme temperature ranges. Silver's unique properties restrict its substitution in most applications.
Silver is used in film, mirrors, batteries, medical devices, electrical appliances such as frdges, toasters, wasing machines and uses have expanded to incllude cell phones, flat screen TV's and many other electrical devices. Increasing industrial demand for silver is forcast due to strong economic growth in China, India, Vietnam, Russia, Brazil, and Eastern Europe. Growing middle classes are now demanding the standard of living enjoyed by many in the West. The demand will continue to increase.
Investment demand for silver has also been rising rapidly the past few years with investors hedging themselves against risiing inflation, currency devalluation and geopolitical risk. Investment demand is starting to have a real impact on silver prices. There are some $50 Trillion worth of bonds and $40 trillion worth of paper money in the world. Money supply is increasing at extremely igh levels globally. This has given rise to the increasing inflationary pressures, a huge liquidity bubble and ripe valuations in the stock markets and property values.
Hedge funds have starrted moviing into the silver market. Artemis Capital Management is seeking to raise $300 milliion hedge fund to to invest mainly in silver. Artemis Silver Fund will put 80% of the funds holding in silver.
Silver remains historically undervalued. Despite the incredible bullish fendamentals outlined, silver has far underperformed nearly all the other commodities. Silver has gone from $4 to $13 today. over a 300% increase in the past 6 years. Compared to other metals it is very little. Copper traded at 60 cents 3 years ago and then hit $4.00 which is a 600% increase - industrial demand by China's infrastructure. Next the middle class buying jewelry.
Silver remains the investment opportunity of the lifetime.