Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Solar Demand Drives Silver Prices Higher

Commodities / Gold and Silver 2011 Sep 02, 2011 - 03:06 AM GMT

By: Anthony_David

Commodities

Fears of a declining industrial demand for silver following the financial problems in Europe and the US kept silver prices at modest levels during early August. Prices did rise in mid-August improving the outlook for the precious metal. The risk of increasing inflation in China leading to a slower economic growth in the country is another concern for the global silver industry.


In the last decade, industrial consumption of silver grew by 39% from 349.7 million ounces in 2001 to 487.4 million ounces in 2010. Industrial demand still accounts for 50% of the global silver demand and that is expected to reach 70% over the next decade given the large increase in applications that require silver.

Silver’s properties make it an excellent choice for many applications, especially in the electrical and electronics sector. Silver is the best choice of metal for electricity conduction, thermal heat transfer and light reflection. It is also a popular alloy component, catalyst and lubricant. Advances in the clean tech and renewable energy market, particularly in the solar photovoltaic (PV) industry, are fueling the demand for the metal.

Silver market expert David Morgan expects silver prices to rally at around $45 per ounce in Q4 of 2011. In fact, based on rising industrial demands, he expects silver prices to reach $100 per ounce in the long-term.

During a recent interview with Hard Assets Investor, Stephen Leeb, chairman and CIO of Leeb Capital Management, said that he firmly believes China’s demand for silver from its solar panel industry will push silver prices to above $100 per ounce. China currently spends almost $1 trillion on alternative energy and the country has a 50% share of the global solar market. So far China has been developing and acquiring polysilicon faster than any other nation and soon it will be silver’s turn. Leeb believes that most investors and analysts are not paying enough attention to China’s fast growing solar PV industry.

In ‘The Future of Silver Industrial Demand’, a recent study commissioned by the Silver Institute, research consultancy GFMS said, “The rise in solar power is arguably the most significant development for silver demand in recent years. This year, demand is expected to reach nearly 70 million ounces, an increase of around 40% year-on-year.”

According to solar market research group Solarbuzz, the US market for solar PV applications is expected to account for 12% of the global market by 2015, a sharp hike from the current level of 5%. Demand from the Asia Pacific market—comprising Australia, China, India, Japan, and South Korea—is expected to grow from the current 11% to almost 25% by 2015. In fact, the sector could cause silver consumption to rise from the 50 million ounces recorded in 2010 to 100 million ounces in 2015. China currently purchases the highest quantity of silver, and demand in China and India is expected to grow by almost 30% this year. Manikbhai Shah, a silver retailer in Mumbai said, “China imported 245.6 metric tonnes of silver in February. The figure was so close to the 260.6 metric tonnes that the country imported last February and it showed that China was willing to shell out money for the white metal at over $30 per ounce.”

Stock analyst Jeb Handwerger reaffirmed that silver’s demand rises from two sources – industry and investment. Demand is at an all time high but supply is declining leading to a tight market. Pure silver is rarely produced by itself, it is usually a byproduct of other metals which is why demand is outpacing supply. However, the importance of silver cannot be denied and Handwerger expects silver prices to reach new highs before the end of the year.

By Anthony David

http://www.criticalstrategicmetals.com

The mission of the Critical Strategic Metals Web Site

is to serve as a monthly compass for those who take a fundamental view of investment regarding the Molybdenum, Manganese and Magnesium metals markets, are concerned with the emerging critical under-supply of these strategic metals to Western nations and wish to profitability chart their course. Each month we will research and provide, in as short and concise a manner as possible, the most applicable information available on resources that will have the biggest impact on our day to day lives. Click here to sign-up for our FREE monthly report.

© 2011 Copyright  Anthony David- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in