Silver On Fire

 

Silver On Fire :

The Explosive Rally of Silver Won't be Stopped
Silver is absolutely dominating the resistance levels, and the intelligent investors are definitely keeping an eye on it. Here is the real story behind this momentum.

Industrial Demand Explosion
Solar energy is the one that has changed everything. A solar panel requires around 20 grams of silver for the purpose of conductivity. The yearly global installations have reached record levels, and China, the US, and Europe are very committed to the aggressive renewable energy target. Electric vehicles are also asking for silver—roughly 25-50 grams per EV which is still lower than the 15-28 grams used in traditional cars. The demand for silver varies enormously for 5G infrastructural rollout which is mainly for telecommunications equipment.

Supply Crisis Building
The big mines in Mexico and Peru are "victims" of ore quality decline and production cost rise. The new mine development cycle is 10-15 years, thereby creating a supply gap that no one can quickly fill. The recycling industry is not able to meet the industrial consumption rates.

Investment Tsunami
Central banks money printing is the main reason behind inflation fears. Silver is regarded as the protector of value in a tangible way. The historically average gold-to-silver ratio is 60:1, but recently it hit 80:1 which is an indicator of silver being undervalued. Retail and institutional investors are aware of this arbitrage opportunity.

Medical and Tech Sectors
Silver's antimicrobial properties are making its application in medical devices and wound care unavoidable. Electronics manufacturers are not able to replace it - mobile phone, computer, and appliance industries require silver.

This is no longer an assumption. It is simply the case of basic demand confronting restricted supply, with the movement of investment-finance being the accelerator.