Vincent Le

Posted by Vincent Le on 14 Mar 2024

Is This the Beginning of Higher Silver Prices?

Since the beginning of the year, silver has been trading in a relatively tight range between $22 and $23.72. This month, we witnessed a notable breakout, with silver surging past $25 as of today.

This move unfolds amid skyrocketing industrial demand, primarily from the solar panel sector. As highlighted in our article “Surging Solar Panel Installations Are Draining Global Silver Reserves”, silver represent the highest single component cost in solar panel production after polysilicon, the latter being oversupplied for the foreseeable future.

Despite silver’s record industrial demand and pivotal role in the renewable energy revolution, silver prices have been muted until recently. We believe there are two underlying reasons:

Understanding Silver's Price

First, future traders remain largely unaware of silver’s surging industrial demand, which is largely settled through offtake contracts outside of futures exchanges and therefore do not directly affect future spot prices. For those interested in a deeper analysis of silver’s price factors, we encourage you to view our video, What Determines The Silver Price?.

In China, physical silver demand is having an impact, however, as silver is now trading at a noticeable premium compared to Western spot prices.

Overlooked by Mainstream Media

Second, silver continues to fly under the radar in mainstream financial discussions. The financial media rarely mention silver, even in contexts where its importance is undeniable—it plays a critical role in renewal energy initiatives, particularly in solar power. Some recent case studies:

  • The Economist: The Economist recently published an article titled “How to Avoid a Green Metals Crunch” detailing the ambitious global green energy initiative targeting a whopping 25-fold increase in solar power to meet net-zero targets by 2050. The article meticulously outlines the necessity for increased production of lithium, cobalt, nickel, and other critical metals, yet curiously omits any mention of silver.
  • Wikpedia: Wikipedia's Green Energy page lists metals like copper, nickel, zinc, cobalt, neodymium, graphite, lithium, manganese, and molybdenum. Remarkably, silver is omitted from this list, despite its crucial role in solar energy production.
  • Gemini AI: When prompted about "what are green metals," Gemini AI defined metals essential for clean energy technologies like solar panels, wind turbines, and electric vehicle batteries but notably did not mention silver, which one would expect to be near the top of the list.

These examples underscore a broader trend: the critical role of silver in green and high-tech applications is still ignored in mainstream analysis and discussions, thereby keeping prices lower than they should be, given the high physical demand.

New Silver Promotion

We are offering a limited promotion on Johnson Matthey 100 oz Silver Bars, priced very competitively at $0.50 per ounce over spot, while supplies last. Johnson Matthey is one of the world's most popular and trusted LBMA good-delivery refiners in London.

Click here to view the promotion.

With only 620 bars available in inventory, this is a chance to capitalize on the silver market's potential before broader recognition catches up. As we continue to navigate these exciting times, our focus remains on identifying and capitalizing on such opportunities for our valued clients.

Warm regards,
Silver Bullion Team

p.s. In case you missed it, our founder Gregor Gregersen and SBTV’s Patrick Vierra unveiled a first look at The Reserve’s massive vault room: