In March 2008, silver hit a peak before falling nearly 60%. In 2009, the metal and its related exchange traded fund (ETF) appear to have been focusing on polishing up.Lara Crigger for Hard Assets Investor reports that the metal has earned back 24% in the first quarter alone this year.

Silver is more of a quiet metal, compared to gold, which gets the bulk of the media attention. But silver is useful as a store of value, and is used as an industrial and monetary asset. Here is are some of silver’s diverse uses:

• A main ingredient for several industrial applications; demand in industry has risen every year since 2001
• It is the best electrical and thermal conductor, the metal is perfect for high-performance electronics or high-voltage circuits
• The metal is even a natural biocide, which is handy in sterilization and treating wounds
• Silver’s high reflectivity makes it a must for fine-precision optics, and photosensitive silver compounds are the engine behind photographic film

Demand is also expected to take off as the metal is a main component in many green technologies, as well. Things like photovoltic cells in solar energy, water purification plants, and silver-zinc batteries are dependent upon silver. It can be described as a “clean-green” metal.

• iShares COMEX Silver Trust (SLV): up 20.7% year-to-date

For full disclosure, some of Tom Lydon’s clients own shares of SLV.

Tags: Commodity ETFs, Precious Metals, Silver, SLV