We’ve all heard about the countless ways silver impacts our daily lives.
Everything from electronics to healthcare technology to solar power and jewelry.
In fact, industrial demand is one of the major factors driving the price of silver bullion.
While these industrial applications for silver are a major part of total demand, one developing technology that relies on silver could be revolutionary, according to a recent report from the Silver Institute.
Simply put, the new technology relates to memory storage in smartphones and tablets.
All you have to do is wake up in the morning to know that handheld devices are completely transforming the way we communicate. Gone are the days of coming into the office for a meeting. Nowadays, you can hold a conference call from the beach (although the wind and sand are usually a distraction).
Known as Resistive Random Access Memory, or ReRAM, this new memory storage technology promises to replace the “flash” based memory these devices currently use. Industry experts say the versions of ReRAM that use silver are especially exciting, with several advantages over flash memory.
Technically speaking, ReRAM operates like a small battery cell, and “stores data through changes in the electrical resistance of the cell,” according to the Silver Institute.
In layman’s terms, the “presence or absence of an electrical charge can be used to store bits of information.”
Advantages of Silver-Based ReRAM
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Energy-Saving – ReRAM is so energy efficient that smartphones using it may last a week or more without recharging.
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Durability – Flash memory can only handle around 10,000 rewrites before it begins to fail. ReRAM can handle millions. Literally.
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Space – One ReRAM chip is about the size of a postage stamp, at least for now. Preliminary versions hold up to a terabyte of data, which is large enough to store roughly 250 high-definition movies.
When Will We See Wide Adoption of ReRAM?
Well, that is an open-ended question and, in truth, it depends on several factors.
According to Joel Hruska of ExtremeTech in a recent Silver Investing News piece, wide scale adoption of ReRAM could occur as soon as 2017-2018, barring “a problem or another technology.”
Yet many companies are jumping on the ReRAM bandwagon, including tech giants like Toshiba, Panasonic and Samsung.
Make Way for Crossbar
Crossbar is a start-up company that appears to be the clear frontrunner when it comes to adopting ReRam, according to the Silver Institute.
The company formed in 2010 and as of last year, it claimed to have $25 million in “seed funding.”
According to Crossbar founder George Minassian, the company has developed ReRAM technology that is “easy to manufacture and ready for commercialization.”
What Does This Mean for Silver Prices?
That’s not an easy question to answer, especially so early in the game.
Yet one thing is clear. If silver-based ReRAM ends up replacing flash-based memory in tablets and smartphones, the impact could be far-reaching.
Coupled with the fact that silver is a component used in many emerging technologies (like solar panels) and you’ve got the recipe for sustained industrial demand well into the future.
Of course, we all know the silver market is driven by a variety of factors excluding industrial demand. And while ReRam is likely to prove significant, just how significant in comparison to other factors — like Federal Reserve policy — is unclear and in the flux.
We do know one thing: exciting times seem to be ahead for the precious metal. And buying silver bullion at today’s bargain-price levels may be one of the best investments you’ve ever made.
What Do You Think?
Will silver-based ReRAM be a driving force for silver prices in the years ahead?
How will industrial demand factor into future silver prices?
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