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GRONINGEN (MINEWEB) - There has been a lot of talk in recent months about both themonetary role of precious metals and investment demand for silver. For Hecla Mining President and CEO, Phil Baker, while theinvestment side of the market is important, it is the technologicalmarkets for the metal that are more exciting. Speaking on Mineweb's Metals Weekly podcast, Baker said the silver market today can bestbe compared to where it was 100 years ago, when photographic demandwas just beginning to grow. "Hecla has been a silver mining company for 120 years - it was agreat business to be in until the early 1980s and it was a terriblebusiness to be in for the next 20 years. We're now back in a phasewhere it will be a great business to be in for the next 50 years atleast." According to Baker, the reasons for this prediction are two-fold.The first is that silver's unique properties mean that its uses invarious forms of technology are growing significantly. "Roughly half of all of the silver that's demanded today, goes intoone of these technological uses. It goes back into the Second WorldWar and then since the start of 2000 - the start of this century wehad all sorts of new uses that have really outstripped that declinethat we've seen since this photographic demand has exited," hesaid. Silver is used in everything from band aids to iPads because of itsconductivity, its malleability, its reflectivity and its ability asa biocide. And, as Baker points out, the existing uses aren't goingaway and "everyday there seem to be something new that comes outthat uses silver." The second reason why Baker is so bullish on the industrial side ofthe market is that, the markets for these technological productsare set to grow significantly in the next few years. For Baker, the trend towards ever-increasing urbanisation meansgrowing markets for technological products. "A good example of that is South Korea. About 20 years ago theywere consuming about 0.05 ounces of silver per capita. Today theyconsume about 0.5 ounces - that increase we think will be the sameincrease that you'll see in China, and you'll see that on top ofall of these new applications that we have for silver." And, while demand is set to grow, Baker is less convinced thatsupply will be able to keep up, at least in the short term. "We've had a depression for silver for the last 20 years, untilabout 2005 and as a result of that, there has not been theexploration for silver. It's really only been since 2005 thatyou've started to see that. So what new production that you seecoming in for silver for the most part, comes in as a bi-productfor some other metal. And if you look at the growth rate for goldand if you look at the growth rate for other metals, lead and zincfor example, there's not many new projects that are on the horizonthat are going to make a material difference over the course of thenext 10 years." But, he says, "The problem that the silver market has is thisunderlying industrial demand or technological demand is growing atsuch a fast rate, that it's hard to envision the mines being ableto keep up with the supply. So what's going to have to happen isthat above-ground stocks are going to have to move from investmentuse, and be put into industrial use over time." Having said that, Baker is also quick to point out that it isunlikely to be one way traffic. "Investment demand will come and will go, and when it goes, you'llsee silver prices being very, very volatile on the downside. Ithink over the long haul it's going to be very volatile on theupside but you'll have these periods of time with lower silverprices." SUBSCRIBE to Mineweb.com's free daily newsletter now. I am an expert from printingstickynotes.com, while we provides the quality product, such as Shaped Sticky Note Manufacturer , China Adhesive Index Tabs, Custom Sticky Notes,and more.
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