The silver price has been running strong since the beginning of the year, confirming its long-term upward trend. And this is despite the upcoming economic dips, but also thanks to rising inflation.
The Silver Price is in a Long-Term Upward Trend
Silver prices have been in an uptrend for some time. It has gained 77% since the beginning of the current commodity cycle in August 2018. And since the beginning of this year, the silver price has gained over 13%.
It did so along with gold, because silver, like gold, is a safe haven asset. But silver is also an industrial metal – the most important metal for reducing energy dependence on oil and gas.
Silver: The Metal For Energy Independence
Silver is a metal that is extremely important for energy independence. This is because silver is a metal with many special properties, such as the highest thermal and electrical conductivity and the highest reflectivity.
Photovoltaic cells coated with silver reflect sunlight many times better than other materials. This increases the efficiency of the systems.
Currently, the silver demand of this industry alone is a massive 105 million ounces per year – more than double what it was 7 years ago. In total, the photovoltaic industry thus already consumes almost 10% of the silver mined annually.
But a study by the German government predicts that in just 20 years, almost 80% of the world’s annual silver production will be used by these applications alone.
This is not an unrealistic estimate, as global solar capacity has been growing at a blistering rate year after year. This year, total capacity will exceed 130GW for the first time. Meanwhile, 18 countries have surpassed the 1GW mark, compared to just six in 2010.
And it’s not just the photovoltaic industry that is particularly fond of consuming silver. A great deal of silver is also used in the manufacture of electric cars. These two industries alone consume 25% of the global silver supply.
The Trend is Significantly Increasing…
This gives additional confirmation to the long-term upward trend in silver price.
Silver is a metal that can benefit from two different investment approaches. On the one hand, silver is and remains a hedging metal. On the other hand, silver is an extremely important industrial metal. It’s used above all in future and key technologies and will be increasingly in demand.
Silver is a must-have. Interim resets always present themselves as buying opportunities.