The monetary role of silver has been recognized in various historical periods, and the word silver is used for money in different languages. In French and Spanish, for example, the words silver and money may be interchanged. The word kesepph in Hebrew refers to money and silver. Surprisingly, for more than fifty million people around the world, the words silver and money have an identical meaning.

Today’s monetary tendencies have taken an interesting turn, also visible in Canada and US, in that the monetary role of silver is growing in importance. Its role is definitely making a great contribution to the exponential growth of silver demand. Demand for this metal is markedly on the rise, especially in India and China, which is sure to keep the price rising and performing better than gold.

It is safe to say that silver has become a global monetary metal. While major currencies around the world being devaluated, its value is on the rise.

Another factor that contributes to the growing monetary role of this metal is silver. Today, precious metals are increasingly seen as a safe haven, with a prominent role for this playing the global downturn; to this, monetary analysts point out that this phenomenon can be observed in Western countries as well. Chine buys silver bars wholesale, and this has led to a growing pressure on the mining industry to enhance its extraction capabilities and meet demand. Most of the demand comes from private and public investors, but a large variety of industries, which use silver, are also coming to play an important role in this regard. In most cases, silver is a by-product of the production of gold, and the gold mining sector has reached its peak. This poses a problem before the industry and investors. Moreover, the major silver producers are limited in number and find it difficult to meet the demand for silver.

The ever rising demand for silver is believed to exceed the supplies of silver soon. Returns from precious metals have reached new levels over the past 10 years. Given that the annual production of silver is not expected to increase, despite the bull market, the price of the metal can only increase.

Representatives of BMG Bullion Fund, a precious metal-oriented mutual fund, assure that silver is starting to take on its role as a monetary metal. According to experts, the price of silver is bound to increase even more. Silver will outperform gold in the following years because it is cheaper than other precious metals. This can be attributed to the fact that the majority of world’s populations is poor, and thus inclined to invest in cheaper metals. Finally, silver and gold may become more valuable than money given the even rising inflation.