Silver prices soar as solar PV panel makers increase production
- Demand for silver from solar PV panel makers is forecast to increase by almost 170% by 2030
- Global investment in solar PV manufacturing doubled last year to around $80 billion
- China more than doubled its investment in solar PV manufacturing between 2022 and 2023
- Global renewable capacity increased by 50% last year, with three-quarters coming from solar PV energy
- Spot prices for solar PV panels dropped almost 50% last year due to Chinese supply flooding the market
- China is expected to maintain a large market share of global supply chains and double its manufacturing capacity by 2024
- Silver prices have skyrocketed, hitting the highest closing price in more than a decade
- Silver miners’ share prices have surged in response to the boom in demand
- Manufacturers of solar PV panels may be forced to raise prices if silver prices continue to rise
- Silver could see a rise similar to that of gold, attracting substantial buying from the photovoltaic industry
The demand for silver is surging due to the booming solar power industry. Silver is essential for the production of solar photovoltaic (PV) panels because of its electrical conductivity, thermal efficiency, and optical reflectivity. Global investment in solar PV manufacturing has doubled, with China leading the way. Last year, global renewable capacity increased significantly, with solar PV energy accounting for three-quarters of the growth. The demand for silver from solar PV panel makers, particularly in China, is projected to increase by almost 170% by 2030. However, spot prices for solar PV panels dropped due to Chinese supply flooding the market. Despite this, silver prices have skyrocketed, reaching the highest closing price in over a decade. Silver miners’ share prices have surged in response to the increased demand. If silver prices continue to rise, manufacturers of solar PV panels may be forced to raise their prices. Additionally, silver could experience a rise similar to that of gold, attracting substantial buying from the photovoltaic industry.
Factuality Level: 8
Factuality Justification: The article provides a detailed and informative overview of the surge in demand for silver driven by the booming solar-power industry. It includes relevant statistics, quotes from industry experts, and information on market trends. The information presented is well-supported and based on data from reputable sources.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of the surge in demand for silver driven by the booming solar-power industry. It includes information on the reasons for the increased demand, investment trends, supply dynamics, and potential future market scenarios. The article supports its claims with data and quotes from industry experts. It stays on topic and does not dive into unrelated territories. Overall, the article offers valuable insights into the silver market and its relationship with the solar industry.
Financial Relevance: Yes
Financial Markets Impacted: The demand for silver from the makers of solar PV panels is expected to increase significantly, which could impact the silver market and mining companies that produce silver.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the increasing demand for silver from the solar PV industry, which could have implications for the silver market and mining companies. However, there is no mention of any extreme events or their impact.
Public Companies: Coeur Mining (Not available), Fresnillo (Not available), Hochschild Mining (Not available)
Private Companies: Recom Technologies
Key People: Mitchell J. Krebs (Chief Executive of Coeur Mining), Eduardo Landin (Chief Executive of Hochschild Mining), Hamlet Tunyan (Chief Executive of Recom Technologies), Paul Wong (Sprott Market Strategist)
Reported publicly:
www.wsj.com 
