Welcome to illuminati silver, we tell you
the truth about silver. Today is Saturday 28th November 2015 and we
are asking the question will the solar industry (or Photovoltaics ) prove to be the saviour
for Silver’s future? Yesterday the silver price closed at $14.10
some 10 cents up on the week, but some 22 cents down on its week high, having entered
into the late $13’s during the course of the day. Technical analysts are predicting
that silver is still in its bearish downtrend and may very well see $13.80 very shortly.
Gold prices are also lower closing on Friday at $1050 some $20 down on the week. Any further
downtrend will certainly put silver prices at risk of reaching new yearly lows, given
their correlation to gold prices. There is no strong economic data due next week save
the US Non-Farm Payrolls Report which is due on Friday 4th December.
So what is going to turn this silver downtrend around?
Well apart from any potential for global economic collapse or significant war event, which may
result in silver prices rising on the back of gold demand, many commentators see that
the future demand for solar panels could be the answer for silver’s revival.
Most listeners to this channel are aware that silver is an excellent conductor of electricity
and heat, which makes it an essential input in the solar panel industry. Photovoltaics
(PVs) are what form the backbone of a solar panel and these PVs use a fair amount of silver
as a semiconductor. According to “Thomson Reuters Interim Silver Market Review,” on
17th November 2015, “demand for silver in photovoltaic cells is expected to increase
by 17% this year alone. According to pureenergies.com the following
12 countries had the highest installed capacity of solar PV power in 2014 and we quote it
in this order: Germany 1st; followed by: China; Italy; Japan; United States; Spain; France;
Australia; Belgium; United Kingdom; India; and the Czech Republic.
Now it’s China, the number 2 in the list we wish to draw to your attention.
According to Reuters on the 8th October 2015, “China has raised its solar power installation
target for 2015 by 30 percent from its previous goal”.
China installed 7.73 GW capacity in the first six months of 2015, and according to the National
Energy Administration China will add another 5.3 GW installed capacity of solar power stations
this year, on top of an earlier national target of 17.8 GW .
Now this is the interesting part: On 17th November 2015 CNBC issued an article
entitled: “ How a global solar drive will boost silver prices” and it quoted London-based
Capital Economics’ – Simona Gambarini who said:
“While the solar industry just accounts for just 6 per cent of overall physical silver
demand now, global solar capacity is growing at an average rate of 53 percent a year in
the last decade, underscoring future growth potential. About 2.8 million ounces of silver
are needed to generate one gigawatt of electrical capacity from solar energy. China is likely
to account for about half of the growth in solar panel production in the next few years,
she said. The country will also increase its installed solar capacity more than five times
from 2014 to 2020.” Now according to pureenergies.com China produced
18.3 GW of energy last year and if we use this figure as the base, an increase of 5
times 18.3=91.5 GW; having already mentioned that currently 2.8 million ounces of silver
are necessary to produce each gigawatt, then we are looking by 2020 of a potential increased
usage of some 205 million ounces of silver for China alone. With 2014 mine production
standing at 844 million ounces and not expected to rise dramatically if at all for the next
5 years, this represents approximately 24% of likely mine supply.
Now if one were to add to this the continuing demand for solar power from the other 11 countries
already mentioned plus increasing demand from emerging countries such as Brazil and Malaysia
coupled with the International communities efforts to ‘promote the green agenda’
one can see the potential for the price of silver to rise, to be significant in years
to come. Now our words of caution or reality, just
before you, our listeners, rush out and purchase as much silver as your bank accounts – oopps
sorry hidden stashes will allow. We ask you to consider 5 main points
1. Silver is currently in a downtrend which is envisaged to continue for a little while
yet. 2. Despite this potential growth, silver demand
may be adversely affected by a reduction in demand from other sectors.
3. The level of silver used in solar panels have already been reduced in recent years
and alternatives are being sought for by manufacturers 4. Much of this growth mentioned is centred
on China and one has to be confident that it can continue with its growth model to obtain
the targets it has set itself. 5. There are other energy sources being pursued
in addition to solar which include wind, tidal and nuclear.
In conclusion, we have frequently stated that we are very bullish about the prospects for
silver long term. Undoubtedly solar panel usage, in addition to other areas such as
medical treatments and electronic gadgetry will form an increasing attraction to this
industrial and precious metal. Our view is, that ‘black swans apart’ when we begin
to see the World’s economies improve, we shall witness the uptrend in silver prices,
something we are confident each of our listeners are looking forward to. Whether this dramatic
demand will happen within 5 years we have our doubts, but our 10 – 20 year view remains
as equally positive as it has always been. We hope you have found this video helpful
and informative, and would appreciate it if you would give it a thumb up, comment and
if you haven’t already done so please subscribe. Please also share this video on twitter and
follow us at illuminatisilv1. Disclaimer: Silver Illuminati 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