silver-the coast is still clear

  1. 5,382 Posts.
    Interesting break down of silver use in photography and the potential inpact or lack of from digital.

    Below is the summary and conclusions.

    Summary & Conclusions:

    The nail-gun and hammer is a good working analogy that suggests co-existence and not replacement.

    Silver photo usage has recently slowed but this is mostly attributed to Japan and to larger economic factors and not digital inroads.

    Silver photographic usage is grossly overstated in the minds of most market participants. Accounting for recycling, only 96 million ounces are actually consumed and not the much larger 256 million-ounce figure widely believed.

    Scrap silver objects (198 million ounces) that one would normally think would count for so much, don't amount to a hill of beanie babies compared to the 160 million ounces of that figure that are recycled from mostly color photography that has more than an 80% silver recovery rate.

    X-rays compose one-third of the reported photo usage, aren't subject to digital inroads and lose 50% of the silver used.

    Digital usage often incorporates silver at various points in the production/storage process.

    When all costs are considered, of the two processes, digital is the more costly and complicated.

    Digital growth has been fueled from WITHIN the larger, historical credit and consumption bubbles. Much smaller digital sales would have taken place had it not been for these bubbles. Due to much larger and more powerful economic considerations, the biggest percentage gains in digital may soon be behind us.

    For this silver investor, "the coast is still very clear."

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.