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Silver is no longer just a precious metal used in coins and jewelry; it has emerged as an indispensable component in the energy transition to a greener, more sustainable world. With governments pouring in massive funds into the development of green energy, the importance of silver in the energy transition can no longer be ignored. The pertinent question on everyone’s lips today is: Will the demand for green energy drive up silver prices in the coming years? In this article, let’s explore the various reasons why silver prices are expected to increase in the coming years.
Silver and the Energy Transition to Green Energy
One of the principal contributors to the increased demand for silver is the energy transition to green energy, with solar energy being one of the principal contributors to this trend. The use of silver in solar energy is largely due to its high electrical conductivity, which makes it an indispensable component in the development of photovoltaic cells used in solar energy. With governments around the world pouring in massive funds into the development of green energy, the demand for silver will continue to grow. The development of solar energy is growing by leaps and bounds, and this has made silver an indispensable component in the energy transition to a greener world.
Electric Vehicles Contribute to the Demand for Silver
Another principal contributor to the demand for silver is the development of electric vehicles, with silver used in the development of electric vehicle batteries. Electric vehicles use more silver compared to traditional fossil fuels due to the high electrical conductivity of silver, an indispensable component in the development of electric vehicle batteries. With the development of electric vehicles gaining momentum in the coming years, the demand for silver will increase, driving up the price of silver in the coming years.
However, the properties of silver are such that it cannot be replaced. Therefore, even if the usage of silver per unit of production might decrease, the sheer growth of renewable technology will ensure the demand for silver remains high.
Supply Challenges Could Amplify Price Movement
The supply of silver is not rising at the same rate as the demand for the resource. The majority of the silver mined today is done so as a byproduct of other minerals. Therefore, the market conditions of those minerals have a direct bearing on the supply of silver.
What This Means for Investors
The world is moving toward green energy, and this trend will only continue in the long run. The use of silver in solar power, electric cars, and other green technologies has cemented the position of the resource in the world. Therefore, for the investor, the dual benefits of silver make it a compelling proposition. The price fluctuations of the resource can always go either way, but the green energy revolution will provide a boost to the price of the resource.
Why Investors Are Watching AU Bullion
The demand for silver is on the rise, and for the investor, it is crucial to find a reliable source of the resource. AU Bullion provides a wide range of silver bullion at competitive prices, which the Canadian investor can rely upon when looking to add the resource to his portfolio.
Final Thoughts
Green energy is not only revolutionizing the way in which energy is harnessed around the world, but it is also revolutionizing the world of commodities. With silver being such an integral component of green energy, the long-term prospects for the metal are certainly bright. For those that are looking ahead, silver could end up being one of the metals that defines the era of clean energy.
