Silver is a rare precious metal, and due to recent economic turmoil, it is now extremely sought after due to it being a safe haven against a weakening dollar and growing inflation. Read on to discover five reasons for the surge in demand and its use as an investment.

1 – The growth of industrial nations such as China and India will increase demand. Silver is used in many household electrical products due to its unique properties. Each year more silver is required to satisfy production needs leading an increase in the silver price.

2 – There is not enough silver being mined to meet the current demands leading to a deficit. Clearly if demand outstrips supply, the price will increase as buyers face increased competition in order to make a purchase. For many mining firms, silver is a by-product of mining another metal such as copper or lead.

3 - Quantitative easing, or printing money, has led to a devaluation of fiat currencies such as the US dollar and the Euro. Precious metals, such as silver, have been increasingly sought after by savvy investors due to their ability to retain value in times of uncertainty.

4 – Historically the prices of gold and silver have always remained in ratio of 1:16. However gold has been particularly strong over the last 5 years resulting in the ratio moving to 1:45. Many predict a return to the ratio with silver prices increasing over the coming years.

5 – A change in market sentiment towards commodities will increase demand for silver. Many investors are already moving money out of equities and bonds to buy physical commodities and this will only increase as tensions throughout the Middle East remain volatile.