Clean technology or the creation of energy from renewable resources has always been seductive to investors… but they keep on getting their hearts broken.
There’s something alluring with the prospect of ditching oil and turning to silver for energy, but it never seems to work out.
Clean tech is here again after years of underperformance. So what’s different this time?
Well, these power sources are now economically viable as subsidies fall away.
Peter McNally, global lead for industrials, materials and energy at research firm Third Bridge, says aggressive investment by utilities in renewable energy has lowered the cost of clean tech and showed it was viable at scale.
Just as utilities invested in natural gas 20 years ago at the expense of coal, they are now doing the same with alternative energy.
Data from the U.S. Energy Information Administration, the statistical arm of the U.S. Department of Energy, shows as of 2019, 18% of the U.S.’s electricity generation came from alternative energy, versus 10% in 2009.
Over the past 10 years, the cost of solar panels has plunged 82% according to the International Renewable Energy Agency.
Some amount of the increase in solar energy may be attributed to Tesla’s electric vehicles and the ripple effect on other industries. There’s also the increasing interest in environmental, social and governance investing.
Of course, in the middle of all this is silver. Sure, there will be some volatility because it is still considered a young industry but silver investment should never be seen as a long-term one anyway.
Like gold, it’s meant to be a safe haven investment… a more affordable one. It is still below $30 per ounce but predictions see silver going up to $50 and even $100.
If predictions come true, imagine your gains.
For now, there are some limits to how much of power generation can come from renewables even at utility scale. Battery technology needs to improve so utilities can tap more stored electricity when the sun isn’t shining or the wind isn’t blowing.
But even if the U.S. slows in renewables adoption, clean tech is a global business. Europe and China are pushing ahead on adoption, which supports the industry as a whole.
So if you are having doubts one whether or not silver should be a part of your portfolio, stop. Silver right for the world. Of course it’s right for you.