Ryan Stancil,
Editor
Aug. 20, 2021
Silver. Everyone ignores it, but everyone depends on it, too.
To many, it’s an afterthought in gold’s shadow. It often lags behind its more popular counterpart, sometimes not enjoying highs in the market when gold does.
Even though silver has its fans, they’re left to cheerlead for a metal that’s often a byproduct, a competitor that always seems to be the runner-up.
But while a lot of commodities investors chase gold, lead, copper, and other elements that often bring silver along with them, silver fans are poised to have their time in the spotlight.
The trends have been pointing in that direction for a while now, but it’s something that looks like it might pick up speed in the very near future — for reasons you wouldn’t typically expect.
Take the memo that was released by the United States Department of Energy this week. It was an easy enough story to miss, given the current implosion in Afghanistan.
Essentially, Biden Administration officials stated that solar energy could provide 40% of the country’s electricity if the government puts the right policies in place to support the technology.
Over the last decade, the technology’s cost has dropped dramatically and its adoption has skyrocketed in kind. But even with cost reductions and wider use, it only makes up 3% of electricity generation today. The costs need to come down, but with the record year the industry had last year, along with the strong year it’s expected to have this year, some believe that this new goal is in reach.
This fits in with the administration’s goals for increased renewable energy infrastructure and creates a window of opportunity not just for people investing in green infrastructure, but precious metals too.
That’s because silver plays a big part in solar panels being able to do what they do.
The photovoltaic cells that make up a panel are what convert the sunlight into electricity. Silver comes into play when, in a powder form, it’s turned into a paste and loaded into a silicon wafer. When light hits that wafer, the electrons are freed and silver, which is a conductor, carries the electricity to either be used or stored later.
So as demand for solar panels grows, so too will the need for the silver that helps them function.
It’s easy to dismiss the metal as something only used for jewelry and other cosmetic functions, but its industrial uses cover many areas, make up nearly 50% of demand, and ensure demand will only climb.
Many consumer electronics need it because of its conductivity. Your TV, your phone, and your computer all rely on some amount of silver to function.
Plumbing, one of the most essential services no one thinks about until there’s a problem, needs silver. When pipes and ducts are joined, silver is used in soldering those connections because it helps make them sturdy and leakproof. It’s a safer alternative to lead, which has caused problems with water pipes in particular in the past.
Even medicine needs it. Silver has a long history of working as an antibiotic because it helps to kill bacteria by absorbing oxygen. Nowadays, it plays an increasingly important role in combating antibiotic resistance thanks to a practice of coating medical tools with the metal to prevent the spread of pathogens.
So, as you can see, silver is more important than many people realize. Because it’s both a store of wealth and has a long list of industrial uses, it’s something that investors are taking note of when looking for places to put money.
The trouble comes with looking for pure silver plays. There aren't many companies that deal mainly in silver. Most have it as a byproduct of some other metal.
But there is one company with silver as its main focus. It has a strong resource, an experienced management team, and a clear path to becoming a silver producer set to take off in the coming years.
Nick Hodge recently toured the mine and has all of the details investors need to know.
You can learn more right now, before the word gets out and the money really starts to pour in.
Keep your eyes open,
Ryan Stancil
Editor, Daily Profit Cycle
Ryan Stancil is an editor and regular contributor to Daily Profit Cycle. He’s been active in the financial publishing industry for more than half a decade, offering insights and commentary on technology and geopolitics to help readers make sense of the constantly changing landscape and how it affects their investments. His readers appreciate his "tell it as it is" writing style, where he always offers a fresh new perspective on what's happening in the market and leaves nothing unsaid.
[leadgenform slug="dpc_dpcweb_pandemic-dividends"]