As an expert in the field of ethical investing, I have witnessed a growing interest in investing in precious metals, particularly silver. However, with concerns about environmental and social impact, many are questioning the ethical implications of investing in silver. In this article, we will delve deeper into this topic and explore how we can make responsible investment decisions when it comes to silver. Ethical investing involves considering environmental, social, and governance (ESG) factors when investing in precious metals like gold and silver. This means taking into account the impact of their extraction and production on the environment and local communities.
By applying responsible investment practices, we can ensure that these metals are obtained and produced in a way that meets ethical standards. One way to invest in silver is through heavy silver and gold coins. These can serve as a hedge against inflation and economic uncertainty, as the value of precious metals tends to increase gradually over time. At Lebrusan Studio, we recently had a client who wanted a gold wedding ring made from a large 22-carat sovereign gold ring he had inherited. By recycling the ring, our client was able to deduct its value from the final price of his order, making his new wedding ring more affordable.
For jewelry enthusiasts, collecting coins high in precious metals can also lead to exciting recycling and remodeling opportunities in the future. However, it's important to note that investment coins should be considered long-term investments. The rise in precious metal prices is a slow and steady process that takes many years. This brings us to the question of whether investing in silver is truly ethical.
The Environmental Impact of Silver Mining
The extraction of precious metals like gold, silver, and platinum has long been associated with significant environmental damage. Unethical mining practices have caused devastating consequences for ecosystems and local communities, highlighting the urgent need for sustainable supply and production methods in the industry.But it's not just about avoiding the damage that precious metals can cause; they also play a crucial role in driving the renewable energy revolution.
Silver
, for example, is a key component in solar panels, while vanadium, another metal, is essential for energy storage solutions. By investing in metals that are linked to green technologies, we not only preserve wealth but also accelerate sustainable innovation. Other metals like chromium, iron, zinc, and manganese are also gaining importance in various sectors, from steel and construction materials to sustainability technologies and batteries.The Social Impact of Silver Mining
As an expert in ethical investing, I have spent 18 months researching "ethical silver." During this time, I visited the historic center of silver mining above the Andean city of Potosí in Bolivia. This city played a significant role in financing much of the Spanish empire.However, while 80% of the gold mined each year ends up in jewelry, only about a quarter of the world's silver is used for jewelry and silverware. But what about the social impact of silver mining? Walmart has recently announced that all gold, silver, and diamonds sold at their stores will come from mines and manufacturers that meet responsible sourcing criteria. This is a significant step towards promoting ethical practices in the industry. ESG investors are also increasingly interested in investing in companies that adhere to recognized responsible mining standards. These principles serve as a guide for evaluating the environmental and humanitarian record of gold mining operations.
The Role of Recycling
Recycling is another crucial aspect of ethical investing.It helps reduce the need for environmentally harmful mining practices, from gold used in jewelry to silver used in electronics. In fact, silver usually comes to market as a by-product of the industrial extraction of other metals like copper, zinc, and gold. This means that by recycling these metals, we can reduce the demand for new mining and its associated environmental impact. Last year, 5,649 tons of silver were recycled out of a total of 26,241 tons of new silver. By supporting companies that adhere to responsible mining practices, promote environmental sustainability, respect human rights, participate in social responsibility initiatives, and maintain transparent supply chains, investors can contribute to a more sustainable and socially conscious mining and production process.
