Silver Lining

Is silver the next platinum? As Amran points out in his comment to the earlier gold post, low global supplies, and more industrial usage, mean silver may eventually do even better than bullion.

For years, platinum enjoyed a second-class although respectable status as "white gold". Throughought the 60s and well into the 70s, platinum languished well below $200 an ounce, according to Gold Miners Research. Much of what was then produced was used for jewellery.

But by 1980 motor manufacturers had discovered a cool use for the metal: it helped convert toxic emissions to less harmful gases. Now, almost any car that rolls off a production line uses a platinum converter. By last year, it had reached an average price of $1, 573 an ounce.

Silver, which is trading today at around $18.26, could go the same way. It is now an important component of silver-zinc batteries, a principal component for electronic devices and, increasingly, electric cars.

Analysts say inventories are being depleted and manufacturers are having to pay more to ensure supplies.

So hang on to that ugly teapot Granny left you in her will: it could be worth its weight in gold, some day.