Solar & Silver

Well, aside from supplying the material for the Lone Ranger’s bullets and the namesake of his horse, silver has other uses in the electronics and medical equipment industries. I am sure there are plenty of other end users as well, aside from good old fashioned cutlery. But the question with silver is its above-ground supply. So does all that demand outweigh the massive supply, which is often a byproduct of mining other minerals?

Yes, silver is a monetary metal, sharing a fraction of the trait that gold is known for. I am not a silver market expert in the least but all those industrial uses plus the monetary utility would need to outweigh supply (Captain Obvious) to impact the silver price beyond the speculative forces that probably drove it up out of the March crash.

Barron’s by way of MarketWatch talks this morning about Solar being a big component of the demand side of the silver market.

Silver to Benefit From Global Solar Surge. It’s Time to Buy Again, Goldman Sachs Says.

I am going to stick with the view that the silver price will be driven more by speculation in an inflationary environment than anything else. But it would not hurt to have a growing Solar industry as a tailwind.

“While an acceleration in the trend of solar installations is clearly bullish, demand for silver as a safe-haven metal and to diversify from gold remains essential for a sustained bull market,” Sprogis said. If both Biden and China press ahead with solar policy, Goldman’s model points to a 9.3% boost to its $30/toz target, while positive solar news, such as a Biden victory could generate a rotation into the metal, the analysts added.

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