Silver consumption is expected to reach a record high of 1.112 billion ounces in 2022. The growth will be fueled by the record industrial manufacturing of silver, which is expected to climb 5% annually as silver's usage grows in both conventional and crucial green technologies.
Demand for physical silver investment is expected to increase 13% in 2022 and reach a seven-year high. Investors have an opportunity to profit by investing in silver bars this year.
Impact of Renewable Energy on the Price of Silver in 2021
Silver prices fell marginally in the first half of 2021 but have since recovered thanks to the booming renewable energy sector. Silver is required for the operation of a range of clean energy products, including residential and commercial photovoltaic (PV) solar panels which is one of the fastest-growing sectors of the green energy movement. Silver is an indispensable component in the manufacture of those panels.
While the prices of other metals have recently increased, silver has trailed. However, analysts believe that silver's price should rise in the near future, considering that silver futures have increased by more than 45 percent in the last 3 years.
A prospective decline in the value of the dollar, a lack of capacity investment in recent years, and perceived or actual inflation as the global economy recovers may all contribute to the metal's price movements.
In early 2021, silver was trading at $30 per ounce after the circulation of a Reddit article proposing a short squeeze on the commodity. In late May, the metal was trading at about $27, a price rise of more than 5%.
The Possibility of a Silver Price Increase
Silver is used in electric cars and solar panels and will be a critical component in the transition to 5G wireless network technology. This will enhance the metal's price and demand at the same time. Currently, however, the metal is behind other industrial commodities in terms of increases, with both gold and silver lagging.
Silver and gold have been slightly overshadowed by the tremendous rise in cryptocurrencies. However, investors are unlikely to choose cryptocurrencies over silver in the long term due to the extreme volatility of cryptocurrencies.
The demand for basic metals will continue to remain robust, despite Chinese officials warning enterprises of artificially inflated commodity prices. Silver is one of the most efficient conductors of electricity. It establishes the conductivity scale, with 100 being the most efficient and 0 being the least efficient. Additionally, the material is rather fire-safe since it lacks the capacity to ignite easily.
Another kind of sustainable energy that requires silver is electric automobiles (EVs). The typical electric car requires between 25 and 50 grams of silver, compared to 15 to 28 grams for internal combustion engine automobiles.
Wrap Up
Today's industries increasingly depend on silver for technological advancements in today's automobiles. This has increased demand for silver, with renewable energy expected to continue increased consumption of silver. Therefore, a price rise is reasonably imminent. BuySilverCoins.eu sells a wide range of silver bars and coins available to retail investors.
