Silver becomes more precious as technology advances, ASX "plays"
John Phillips

The days of silver lurking in the shadows of gold may be fading - because as the world becomes more reliant on technology - it becomes more reliant on silver.

For the past three-decades the world has used up more silver than has been mined, with rising demand and diminishing supply set to provide support for the silver price.

The price of the metal may have recently fallen in half, but this could be the ideal opportunity to look at Australian Stock Exchange listed silver stocks which could be set to ride the next silver boom.

BHP Billiton's wholly-owned Cannington in north-west Queensland is the world’s largest and lowest cost producer of silver and lead.

On a global scale, Mexico is by far the world's biggest producer with 162.2 million ounces in 2012, followed by China (117moz), Peru (111moz) and Australia 57 million ounces.

Silver, the world's super metal

Silver is the ideal industrial material, with no other metal having its combined strength, malleability and ductility, or facilitates electrical and thermal conductivity as well, or can reflect light and endure such extreme temperature changes, according to The Silver Institute.

Jet engines of today and tomorrow can depend on silver-coated bearings for their performance and safety, with all jet engine manufacturers utilising these high-performance silver bearings which provide critical fail-safe lubrication.

Demand from technology sector to drive silver demand

Silver is now becoming more and more critical in healing conditions including severe burns. The most powerful treatment for burns is silver sulfadiazine, which is used in every hospital in North America to promote healing and reduce infection.

Silver is also widely used as a chemical catalyst, reflectants, circuitry, superconductors, brazing and soldering and photography.

The metal is also used as a store of value on coins, jewelry and silverware.

With the globe's insatiable appetite for new technology, and of course the emerging middle classes, these are some tin companies listed on the ASX. 

ASX silver "plays"

This week Investigator Resources (ASX: IVR) delivered a maiden 20 million ounce resource for the Paris project in South Australia, which has the potential to be open-pittable.

Investigator is now  at the forefront of an emerging new silver belt in South Australia, with the maiden resource delivering a very strong foundation to build on.

There is the potential for low costs compared to peers, with mineralisation amendable to free digging - lowering and operational expenditure.

Argent Minerals (ASX: ARD) wholly-owns the Kempfield project in New South Wales, with the company looking to bring the project into production.

Kempfield production will be from a stage-by-stage process, with the plan to mine around 8.8 million tonnes over 5 years to produce 9.9 million ounces of silver (at an approximate C1 cost of $16.6 per silver bullion ounce) in Stage 1 of the project.

Cobar Consolidated Resources (ASX:CCU) is developing the Wonawinta silver project south of Cobar in western New South Wales.

Cobar is ramping up silver production at the Wonawinta Silver mine to a targeted production rate of 200,000oz per month.

Note:  These companies are provided for background on the silver sector.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

John has over ten years' experience in financial markets including four years internationally, with roles predominately focused as a Treasury Dealer and Treasury Manager, within both the corporate and banking sector. John has also worked as a financial writer and analyst, with qualifications including being recognised as a Fellow of FINSIA since 2005.

www.proactiveinvestors.com.au