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Combat Climate Change And Silver Streak Will Continue

Green Boom
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EDITOR NOTE: Jim Cramer’s famous for saying that “there’s always a bull market somewhere.” Indeed, it’s true. It also exceeds the broader market to which Cramer typically refers. A severe drop in your purchasing power triggers a bull market in gold and silver. But let’s stop for a moment to focus on the white metal, for silver occupies a unique and multifaceted position. Not only will the Fed’s monetary destruction cause the metal to turn bullish, but the Biden administration’s wasteful approach toward the emergent “green energy” industry will only be a boon to the metal’s monetary and industrial characteristics--not only is it a necessary component in renewable energy tech, but it also serves as a safe-haven against the effects of the government’s wasteful spending. Add to that industrial demand in its more traditional forms of use, and you’ve got a potential winner in all fronts--boom or bust; monetary hedge or industrial consumption. 

As the Green Energy Revolution gains traction, greater attention is being paid to the critical roles of various metals. One in particular is Silver.

After receiving a wave of retail attention earlier this year and briefly trading above $30 an ounce, Silver’s mainstream media coverage is fading. But traders are still buying up the precious metal on every dip, as it is still extraordinarily cheap relative to its peers.

Silver is definetly the best trade in 2021. There is a lack of Silver around the world. There is not much Silver at any refineries and getting your hands on physical Silver is still difficult. In fact, Silver is now rarer than Gold, which means there is a risk of a real Silver squeeze this year.

And let’s not forget the Green Energy Revolution.

Now the $1.9 trillion stimulus package has been passed, Democrats will turn their attention to President Biden’s ambitious goal of spending big on renewable energy infrastructure and solar power technology to combat climate change.

Silver is a key component in renewable energy and solar power technology. Based on our proprietary research, photovoltaic demand for Silver could exceed 3000 tonnes in 2021 – and that’s just the beginning.

As governments around the world pursue more aggressive environmental policies to combat climate change – this alone will continue to be a major driver of Silver demand for years to come.

In the long term, I see a lot of upside potential for Silver, which makes it look very attractive at current levels.

Where are prices heading next?

Watch The Commodity Report now, for my latest price forecasts and predictions:

Originally posted on FX Empire

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All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

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