Welcome to illuminati silver, we tell you
the truth about silver. Today is Monday 19th March 2018 and we are
asking the question are Solar Panels the likely saviour for Silver prices?
Simona Gambarini, commodities economist at Capital Economics, said that her firm is maintaining
its bearish forecast on silver, looking for the price to end the year at $15.50 some 70
cents lower than the price it is today Her rationale for this is that she believes
that the Industrial demand for silver will not be as bright as many forecast and that
the solar power sector, often cited as the saviour of silver is not as strong as many
believe. She says:
“We think that silver will eventually be displaced by cheaper metals…….. Silver
is still one of the most expensive components in a solar panel, accounting for 10-15% of
the total cost. What’s more, its price volatility has exposed manufacturers to huge fluctuations
in their bottom line.” She believes that companies will use the cheaper
metal aluminium or aluminum and copper where it can, meaning that silver’s role in solar
panels, although present, will diminish over time despite, the fact that solar capacity
is expected to rise from an average of 39GW created between 2010 and 2016 to 74 GW in
the next 10 years. She adds
“Overall, we expect demand for silver in solar applications to continue to increase
over the next few years, but …. further down the line, we think that there is a risk
that silver usage in the solar industry will be completely displaced by cheaper metals,
such as aluminum or copper.” The Silver Institute contradicts this in its
report in mid-January, stating that silver demand in photovoltaic cells could hit a record
after the sector consumed 92 million ounces of the precious metal in 2017.
Our view is that Simona could be right in terms of solar panels; however she is neglecting
to a large extent the potential rise in electric cars requiring silver and also other new technological
products currently being introduced. Of course, Industry will use cheaper alternatives where
it can, and this will to some extent put a cap on silver prices, however as we all know
silver is also seen as a precious metal substituting for money along with gold, and over the next
10 years it is almost inconceivable that there will be no financial crisis during this time.
We shall be watching very closely the solar panel figures and observe whether the Silver
Institute or Capital Economics are the more accurate in their predictions.
What do you think? We’d be interested to hear.
We hope you have found this video interesting and informative and if so, please give it
a thumb up and share it on twitter. Also kindly visit our website at illuminatisilver.com
and if you haven’t already done so please subscribe as a free member for regular email
updates and offers. Our Facebook page which is updated regularly
can be found at facebook.com/illuminatisilver Disclaimer:
Illuminati Silver owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.