Silver's industrial uses drive investment surge, says Vikas Singh of MMTC-PAMP

Forget gold; Silver is experiencing a modern-day boom. Traditionally viewed as a safe haven investment, silver's true strength is being revealed in the industrial sector. Vikas Singh, MD and CEO at MMTC-PAMP, in an interview with BT Money Today, says this surge in demand, particularly for solar panels, green technologies and electronics, is fuelling a significant rise in investment as the market scrambles to meet growing needs.
 
Edited excerpts:
 
BT: Beyond Silver's traditional uses in jewellery and silverware, what are some emerging industrial applications driving the demand for silver investment?
 
VS: Investors have multiple options to invest in silver, including minted products like coins and bars, bullion, Silver ETFs, and jewellery. Silver also plays a crucial role in manufacturing consumer durable goods such as automotive electronics and semiconductors. According to a report, global silver demand is projected to reach 1.2 billion ounces by 2024, highlighting its expanding significance across multiple sectors.
 
Emerging industrial applications are significantly driving the demand for silver. For instance, silver is indispensable in the production of photovoltaic cells used in solar panels, which are crucial for renewable energy generation. Additionally, silver's exceptional conductivity makes it vital for the advancement of 5G technology and electric vehicles (EVs). Its antibacterial properties are also being leveraged in medical equipment and water purification systems.
 
At MMTC-PAMP, we are bullish on silver metals, offering our consumers the widest range of products. We continue to provide thematic and purest products with access to a range of 999.9+ purest gold and silver minted products such as coins and bars. As India's only LBMA-accredited gold and silver good delivery refiner, we uphold the highest global standards, ensuring our products are suitable for both investment and industrial applications.
 
BT: How does the current economic climate, specifically inflation and interest rates, influence investor sentiment towards silver as a hedge?
 
VS: Silver is important from a customer acquisition point of view. Additionally, with various external developments, silver acts as a hedge during reduced economic opportunities. Along with this, the practical application of silver for industrial usage also makes silver an attractive investment.
Further, at MMTC-PAMP, we put equal emphasis on both gold and silver products, allowing customers and investors to make their own choices.
 
BT: Silver is often seen as a complement or alternative to gold investment. How do you see the price movements of these two metals impacting each other in the coming years?
 
VS: We have witnessed a consistent increase in demand for both gold and silver products. Gold and silver have an inherent value making it an ideal choice for gifting and generational value. Even though gold has been closer to the hearts of consumers, silver has equally maintained its position in terms of value addition and intrinsic value. Moreover, the selection of the respective metal will be contingent upon the investment objectives of the consumers.
 
BT: Technological advancements are constantly evolving. How might new discoveries in areas like renewable energy or battery technology affect silver demand long-term?
 
VS: Technological advancements are indeed rapidly evolving, and new discoveries in areas like renewable energy and battery technology are poised to significantly impact silver demand in the long term. Silver plays a crucial role in various high-tech applications due to its exceptional conductivity and antimicrobial properties.
 
In the realm of renewable energy, silver is a vital component in photovoltaic (solar) cells. As the global push towards sustainable energy intensifies, the demand for solar panels is expected to soar, thereby increasing the need for silver. Innovations in solar technology may enhance the efficiency of photovoltaic cells, further driving up silver consumption.
 
Similarly, the advancement of battery technology, especially in the development of electric vehicles (EVs) and energy storage systems, is likely to boost silver demand. Silver is used in batteries for its superior electrical conductivity, which enhances battery performance. As the EV market expands and the need for efficient energy storage grows, the use of silver in these technologies is anticipated to rise.
 
BT: What advice would you give someone considering including silver in their investment portfolio (especially Silver ETFs) for the first time? Are there any specific factors they should be aware of?
 
VS: We at MMTC-PAMP have always positioned both gold and silver as viable investment options when promoting our offerings. While traditionally gold has been viewed as the most preferable option, we have not necessarily followed this hierarchy in our positioning of the metals.
Recognised as India’s only London Bullion Market Association (LBMA) – accredited Good Delivery Gold and Silver refiner, we are only brand providing the purest gold and silver minted coins and bars with 999.9+ purity level and positive weight tolerance to consumers and investors. Meaning our customers and investors get more in value for their purchase of our minted products with the Finest Swiss Craftsmanship.
 
Our approach remains consistent as we continue to offer and promote both gold and silver products without favouring one over the other. We strive to educate our valuable customers to make informed investment decisions based on their individual preferences and financial objectives.