“Photovoltaics, also known as solar panels, are the single largest industrial application for silver.”
~ Peter Krauth, Silver Stock Investor
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Last week I wrote a bit too cynically about the demand for silver.
Even though there’s potential for conflict over a growing trade war, demand will most likely remain high.
Here’s what’s happening:
The Biden Administration is doubling (and quadrupling in some cases) tariffs on green technology imports from China.
CNBC reports:
Biden raises tariffs on $18 billion of Chinese imports: EVs, solar panels, batteries and more
“Starting this year, President Joe Biden will quadruple tariffs on imported Chinese electric vehicles, from 25% to 100%. The import tax on Chinese solar cells will double, from 25% to 50%…
…Starting in 2025, tariffs on imported Chinese semiconductors will jump from 25% to 50%.”
It doesn’t look like tariffs will slow demand for silver…
That’s because the demand for silver is mostly industrial, which comes to almost 60% of silver’s total demand.
Silver is used as an essential component in green-applications like solar panels, EVs, and hybrids.
The World Silver Survey 2024 reports:
“Industrial silver demand rose by 11% to 654.4Moz (20,353t) in 2023, posting another record high. This was mainly due to the structural gains from green economy applications, particularly in the photovoltaic (PV) sector.
It was PV’s capacity additions, well above expectations and accelerated adoption of new generation cells, that helped drive the significant growth of 20% for electronics & electrical demand.
Strength in other green-related applications, including power grid constructions and the automotive sector, also assisted here.”
Demand is highest in China, the US, and the European Union, and projections are admittedly “out-of-this-world.”
Rubino writes:
More Good News On The Silver Deficit“Most of the current deficit is due to solar panels, which is the fastest-growing line in the above table and shows no sign of slowing down. Here’s the projected solar demand growth in the US (which is a distant second in size to China):”
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Tariffs on Chinese solar cells are increasing 50%…
And EVs up to 100%, which basically halts all EV/Hybrid imports from China.
That may appear to affect demand, until you read the fine print.
The tariffs are limited to the assembled products. If Chinese companies want to keep sales up they may be forced into manufacturing solar, and electric vehicle components for their US competitors.
Components, which all use silver.
So…
If we look at how these tariffs…
Will they change silver’s industrial fabrication forecast?
Will they change demand?
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According to the chart above, China may still own manufacturing of the parts, but most likely not the brand name.
While America…
America’s solar panel brands will assemble, and reap the profits on protectionist policies, forced globalization, and economies of scale.
