Why Silver Prices Could Realize Huge Benefits From Surge In Solar Panels And 5G Demand

(December 15th 2020 - PRNewswire)

In times of global crisis, historically investors have moved toward gold as a safe haven… but there is another metal which is not just being viewed as a safe place to store assets… one whose value is projected to continue to grow in spite of the pandemic. That metal is silver. Its value is expected to rise as demand for solar panels and 5G increases over the next decade. Researchers from Kent Business School found that the Rising demand for solar panels is having a major effect on the worldwide price of silver. Silver is a core element for the manufacture of solar panels, as it has the highest electrical and thermal conductivity of all metals. As such it is heavily used in solar panels. The financial markets are also well aware of this fortuitous marriage of silver to the solar panel industry. It is IN DEMAND.

A recent article in Barrons spoke on the subject, saying that silver could add some luster to portfolios in the new year. "Analysts see the white metal rising to $30 an ounce in the next year from the current $23.36, and even higher given the large-scale stimulus needed to revive economies. It would be a continuation of the trend this year, which has led to the surge in gold and silver prices as investors hunt for havens. Gold grabs most of the attention, but silver acts in much the same way as its yellow cousin, namely a hedge against the dollar. That has been the case this year. It added: "Goldman Sach's Mikhail Sprogis explained in a note last month that silver is a key component in the solar industry, which is poised for big growth.

The Barrons article continued that: "President-elect Joseph Biden wants to install 500 million solar panels over the next five years. Goldman estimates solar installation will jump 50% from 2019 to 2023. Installations are also expected to increase overseas, especially in China. The U.S. election outcome isn't murky anymore, with Biden set to be inaugurated in January. But the economic recovery is far less clear, especially with new business restrictions in parts of the world where new coronavirus cases are surging.

Citigroup analysts are even more bullish, with a $40 price target on silver over the next 12 months, driven by investor desire for safety as well as industrial demand once the recovery picks up. They see a return of the 2010-11 bull market in silver as demand rises 6% in China, from both industrial buyers and retail investors."