How Will Solar Panels Impact The Price of Silver?

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Published: May 26, 2022

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Silver is heading to $35. Wealth Research Group, an investment research company, anticipates Silver is on its way to $35 per ounce. 

They believe that September’s 2021 dip was the end of a correction period. Silver’s correction, they think, started on August 6th of 2021, as it nearly touched $30 an ounce, peaking at $29.37 and bottoming at $22.68 on September 23rd.

They believe that the correction is over, and industries are back to work, industries that need Silver.

But Wealth Research Group is not the only one that sees Silver reaching all-time highs in the upcoming years.

In the past, Bank of America has mentioned that Silver has the potential to hit $50 per ounce. And Jeff Clark, a precious metals expert, believes silver prices could double and hit $50 per ounce too. These forecasts come from research groups or experts who have years of experience studying and monitoring the silver market. 

Regardless of which of these predictions becomes true, the price of Silver is still going up. Why? The attempt to shift the economy to renewable energy favors the price of Silver. And it is happening now. 

Key Takeaways: 

  1. The short supply of Silver is delaying the transition to renewable energy, but investors are happy. The spot price of silver goes up when supply is low.
  2. Silver is making investors happy and helping others by opening opportunities for employment in the renewable energy sector. 
  3. The accelerating demand for Silver from different sectors and groups may cause a silver rally sooner than later. 

New Solar, Not Enough Silver

We never thought this day would come. The media is covering environmental issues like it s the presidential elections. Every day, a company with an innovation promises to cut the cost of energy and eventually eliminate our carbon footprint. 

At the end of 2021, Standard Industries’ GAF Energy introduced a new solar roof that is designed for the masses at the CES trade show in Las Vegas. They call this the Timberline Solar. 

David Millstone, co-CEO of Standard Industries, said that everybody who has put solar up has tried to do it by going around the roof, causing waterproofing problems, and it is ugly. It doesn’t make for very good roofing.

Timberline Solar integrates a nailable solar shingle that will be assembled at GAF Energy’s facility in San Jose, California. They said this is the world’s first solar shingle. 

GAF Energy worked with the Department of Energy’s Sandia National Laboratories to guarantee its safety and durability.

Even better news is that it promises to be everything that Tesla’s solar roof is not. They promise that it is way more affordable and there is no multi-year wait. It’s also experiencing some legal challenges. 

In December, Reuters reported that the Securities and Exchange Commission had opened an investigation into whether it failed to properly notify shareholders of fire risks associated with solar panel system defects over several years.

GAF is not going into this game with anything but wishful thinking. They are one of the biggest roofing companies in the U.S. 

More than 5 million new roofs are installed on U.S. homes each year. GAF has 25% of the market share. If at least 10% of that yearly demand goes solar, at a rough price of at least $10,000 per roof, that would account for more than $1 billion in solar roofing revenue for the company. 

This is fantastic news for our environment. We do not doubt that GAF will succeed. They are already the roofing company in America. All they need in every sales call is to mention solar roofing. It would be tough to fail.

However, here is the problem: we don’t have enough Silver to meet the demand. We have been saying this for a long time, and no one seems to be listening. We need to shift to renewable energy, but we don’t have enough Silver. 

We need to start looking into other energy sources, such as hydropower. If we rely on solar energy, we will not be able to transition to renewable energy fully. 

We just don’t have enough Silver. 

Of course, as investors, this is an opportunity. We are finally seeing the entire country moving towards renewable energy, and that means demand for Silver, along with other precious metals, 

And, as previously mentioned, we don’t have enough of it. That will only amount to an increase in the price of precious metals, specifically Silver. 

Silver’s Shift To Renewable Energy

The biggest problem with our country’s drive to shift to renewable energy is not the cost. The biggest issues are (1) we don’t have enough raw materials to create the equipment needed to generate renewable energy, specifically Silver. The second problem is worse; no one is doing anything about the first problem. 

Many high-tech electronic components, like solar panels, rechargeable batteries, and complex circuits, require Silver. They also need lesser-known metals like praseodymium, dysprosium, and terbium. 

A group of researchers from the Dutch Ministry of Infrastructure determined how many of these critical metals will be required by 2050 to make enough solar panels and wind turbines to combat climate change effectively. 

Demand for some metals like neodymium and indium could grow by more than a dozen times by 2050, and there might not be enough supply to power the green revolution.

Ed Moy, former director of the U.S. Mint, said that the mints’ inability to keep up with physical coin and bar demand is proof of the shortage.

Moy emphasized that it’s not only the U.S. Mint, but other Mints around the world, including Australia’s Perth Mint, the Mexican Mint, and others, that are running out of Gold and Silver. 

That’s a severe problem because it takes time and money to open up a new mine. There’s also strong opposition from environmental groups to opening more mining sites in the U.S. 

We need to start thinking about this now. We need to explore other renewable energy sources and start thinking about reviving the mining industry to produce more of these metals. 

Of course, this sounds like it’s a good problem for investors. When the gold and silver supply is low, prices will hike up. 

Silver is making people happy in other areas too.

Silver’s Future Is Here

Thanks to new and old companies in the renewable sectors, twelve million people are newly employed, according to a recent report by the International Renewable Energy Agency (IRENA) and the International Labour Organization. 

According to the report, despite the slowdown caused by the COVID-19 pandemic, solar and wind jobs continued to grow and accounted for 4 million and 1.25 million jobs, respectively. 

IRENA data show that China commanded a 39% share of renewable energy jobs worldwide in 2020, followed by Brazil, India, the United States, and members of the European Union. 

But even countries we rarely hear about when it comes to renewable energy are creating jobs in renewables. Vietnam, Malaysia, and Indonesia have joined the renewable energy movement. Colombia, Mexico, and the Russian Federation are new to the move too.

In Sub-Saharan Africa, solar jobs are expanding in diverse countries like Nigeria, Togo, and South Africa.

That’s not the best part. According to IRENA and ILO’s research, if you have experience in the renewable sector, do not be afraid of losing your job because you will soon find a new one based on the number of businesses and companies open in the renewable sector. 

ILO global sustainability scenario to 2030 estimates that the 24-25 million new jobs will surpass losses of between six and seven million jobs. 

The organizations believe solar would account for 19.9 million jobs by mid-century, followed by bio-energy at 13.7 million, wind at 5.5 million, and hydropower at 3.7 million.

In their view, energy transition technologies such as batteries for electric vehicles and green hydrogen could also become significant sources of jobs, as electrolyzers and other green hydrogen infrastructure can create about two million jobs globally from 2030 to 2050.

That’s good news for Silver, Gold, Palladium, and Platinum. But especially Silver. As we have said several times, Silver is the primary material used in renewable energy equipment such as solar panels. And the world needs it. 

But is a shift to renewable energy possible yet? 

Another Reason Silver Is Going Up 

Billionaire Ray Dalio doesn’t believe it’s possible to shift to green energy too fast. He doesn’t think it’s possible, especially with surging inflation.

Dalio said that if the government stops its financial support to oil producers, the food and other essential goods will suffer the consequences. Ending financial assistance to oil producers will make the import, export, and transportation of basic goods and commodities the ones affected. 

With no financial support for oil, fuel costs will go up. Companies will have no choice but to pass on the increase in production costs to the end consumer. 

Dalio appeared at the Abu Dhabi Sustainability Week summit and said that a “smart” shift to a green economy needs to be gradual.

He is not wrong. Last month, Brent crude oil traded above $88 a barrel — the highest level since 2014.

Rising oil prices are supported by expectations of higher demand in 2022 as economies continue to recover. Meanwhile, production worries are mixed in with increased geopolitical tensions on the supply side. But even more pressing is the shortage of Silver, the primary component in solar panels. 

To this day, there is still a fixation on using solar power. Without silver, the shift to renewable energy is impossible.

This illusion that Silver and precious metals are readily available when needed is ludicrous. Even if we melt all the Silver we have ever mined and used, archeological pieces are damned; we will still not have enough Silver. 

A short supply of Silver could only favor the spot price. 

Silver As An Investment

The shift to renewable energy may take some time, but it may happen. Billionaire Ray Dalio said it’s not possible just yet. He has faith in a shift, but only with the correct approaches.  

In the meantime, the price of Silver will benefit from the short supply in demand to make solar panels for the shift to renewable energy. And even when the change to renewable energy happens, the demand for Silver may increase more. Every renewable energy company will want Silver. Rapid demand for the material will only favor Silver’s spot price. 

If financial experts and billionaires trust Silver as an investment and have faith in its price potential, more people should trust it. There may be a short supply of material, but Noble Gold has enough Silver for you. 

We understand that investing in Silver will only play in your favor for a well-balanced portfolio. Earning maximum gains is desired, but remember that a diversified portfolio matters too. Having Silver in your investment portfolio mitigates risks and plays as a safety net that, if all fails, you will have Silver to back you up.

If you want to learn more about investing in Silver and how to add it to your portfolio, click the “Download the Guide” above. Download your FREE Gold and Silver Guide to show you what you need to do to get started.

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