Recently, Gold Fields Minerals Services produced a report on behalf of the Silver Institute about the supply and demand of silver in the year 2015. The report signaled a growth in the demand for silver in the solar sector. The increased demand from the solar sector could mean great things for the demand of silver. In order to understand how the increased demand for silver from the solar industry would reflect the value of silver, we must look at the year 2014.
How the Demand for Silver Looked in 2014
In 2014, the demand for silver stood at 1,066.7 million ounces, making it the fourth highest since the year 1990. Experts also looked at where the demand came from, stating that silver bars and coins were responsible for the rising demand for the precious metal.
The same is true for the demand of silver in the jewelry industry where it reached a record-breaking 215.5 million ounces with most of the demand coming from India. In addition to the increase in demand in these sectors, silver is also in demand in the wearable tech industry. Silver movements into the wearable tech industry will continue down the line, as it is an up and coming market. Out of all of the sectors, the solar sector is eyeing silver, aiming to acquire a large part of it, especially in the year 2015.
Demand for Silver in the Solar Sector Increases
Even though solar sector always had a demand for silver, but this time around, the demand has significantly increased. From 2013, silver has risen from seven percent, coming to 59.9 million ounces. The sector has credited this to the frugal utilization of silver content for each solar cell and to an eleven percent increase in the installations of solar panels. The combination of these two factors will give rise to the demand of silver in the solar sector, increasing it to fifty-seven gigawatts of electricity in the year 2015.
Where Will the Demand Come From?
In 2015, China will install seventeen gigawatts of solar capacity and this is expected to rise over the following decade. This can only be made possible when important players in the solar industry belonging to different countries will gather in Paris to discuss the future of the solar sector. If everything goes well, India and China will install solar panels in abundance, resulting in a rise in the value of silver.
For now, the value of silver remains low, but it could skyrocket as soon as all the key countries sign the deal. Therefore, investors should begin to invest in silver, if they have not already, as they could really benefit from the rising value of silver. However, they will have to wait patiently for the demand of silver to increase in the solar sector. While you wait, you should invest in gold and silver to have both precious metals as part of your investment portfolio. Do keep tuned for any updates regarding the future of precious metals.