11.11.202110:40 Forex Analysis & Reviews: Forecast for Silver

According to Heraeus, a European precious metals company, the growing demand for solar energy creates a bright future for silver, as governments around the world continue to strive for the development of environmentally friendly renewable energy sources.

In a report published on Monday, Heraeus analysts said that they are optimistic about silver and see excellent long-term potential.

They said that solar energy growth accounts for 11% of industrial demand for silver, and 101 million ounces of silver were consumed last year.

According to the forecast, the number of photovoltaic installations by 2022 will exceed 200 GW for the first time in history. Here, silver consumption will approach ~140 million ounces.

The solar energy sector attracts a lot of attention. World leaders gather in Glasgow, UK, for the United Nations Climate Change Conference (COP26). Last week, Australia, France, India, the United States, and the United Kingdom launched the One Sun, One World, On-Grid initiative, which plans to create a cross-border interconnected global energy system.

The statement of the new committee says that the implementation of One Sun, One World, One Grid will allow everyone to achieve the goals of the Paris Agreement on preventing climate change, accelerating the transition to clean energy.

Some participants at COP 26 are pushing for governments to achieve zero carbon emissions by 2050.

Despite the fact that silver is an important component of solar panels, Heraeus analysts also noted that market demand is not without problems. They said that silver is the second most expensive component of solar panels, which has led companies to use it less, which is also called saving.

The renewed interest in silver is noticeable from the result that prices are kept above $ 24 per ounce.

Due to the growing industrial demand due to the green energy revolution, many analysts describe silver as the most important metal for future economic growth.

Along with industrial demand, silver turned out to be profitable as a monetary metal together with gold, as investors are looking for new means of protection against inflation in the face of growing price pressures.