Silver has been one of the most sought-after precious metals on the market. Just about any investor that's worried bout the financial uncertainty surrounding FIAT currencies will diversify their portfolio by investing, and this can be in the form of gold or silver.
Silver has been seen as a far more appealing option by many beginners due to its lower cost of entry. Silver is cheaper than gold. However, silver also has a lot more use cases than gold, especially industrial use cases.
One of the latest uses of silver has been seen in renewable energy, as the planet and the people within it are fighting for a greener future. Today, we will explore silver's role in renewable energy and how its industrial use cases reach far beyond traditional electronics or dentistry. Let's dive in.
Silver’s Role As An Industrial Metal
Silver has gathered a lot of appeal in industrial use cases because it is one of the best electrical conductors. No longer is the silver market only of interest to collectors or brokers, but it has a great effect on those in the automotive and in solar industries.
Globally, more nations have begun making it clear that they are going to make investments in clean energy.
In fact, in 2019 alone, $141 billion was spent on solar energy technology development in. Additionally, the energy in the United States is expected to comprise 48% of renewable power by 2050.
The number of electric vehicles on the road has increased by 43% in 2020 alone when compared to the stats of 2019.
It is clear that each of these developments has marked a major milestone when it comes to the global transition away from economies dependent on fossil fuels.
With the right funding and the right incentives for production, we can see a continued large-scale appeal in photovoltaic (PV) panels, ones required for the generation of solar power.
Silver plays a major role in the production of both electric vehicles and photovoltaic (PV) panels. This is due to the conductivity and the corrosion resistance that silver has, which makes it a requirement for conductors and electrodes, and almost every single electrical connection in an EV utilizes silver. The automotive industry also uses 55 million ounces of silver on an annual basis.
The Reliance on Silver Battery Powered Devices Have
Today, more than ever before, the everyday person is reliant on batteries for energy storage. All of these forms of non-fossil fuel production of energy need to be stored. If EV demand increases, there can be an increase in the demand for silver as well. This is due to silver's unique electric conductivity properties. These make it an essential part of anyone making electronic devices.
Additionally, anyone that aims to enter the silver market needs to be aware of the fact that any solar energy investment will translate to increased demand and, in turn, value for silver.
The world will carry on when it comes to making investments in renewable energy. This will put silver on the road toward a high level of growth in the long term.
How All of It Ties Together
The silver powder can also get turned into paste, which is loaded within a silicon wafer. Then, when light strikes this silicon, the electronics are set free, and the silver carries the electricity for immediate use or can store it within batteries for future consumption.
The typical solar panel can contain around 20 grams of silver. As the global solar capacity grows, so will the demand for solar. Here is how all of it works in more advanced terms.
PV cells are small in regard to their size. Their silver content is smaller. When light strikes a PV cell, the conductors can absorb the energy, and the electrons get set free. The flow of electrons then generates electricity, and silver pastes get used to create conductive layers in the cell, on the top and on the bottom of the silicon semiconductor.
As the best conductor of electricity, silver can carry and store electricity efficiently, and this, in turn, maximizes the energy output of a solar cell.
Every single electrical connection that occurs within an electronic vehicle features silver within it, and over 55 Moz of the white metal is used annually by motor vehicles.
There are also numerous electrical contacts that are coated with silver, and these are used for operating electric windows and moving electrically powered seats. Additionally, silver-ceramic lines get used for defogging a car window during winter and for automatic parking systems.
Silver can also be used in systems for distance sensing and for starting the engine and the sparkplugs. EVs are expected to account for 49% of silver usage in the automotive industry by 2040.
The Right Path Towards Making an Investment In Silver
With all of that in mind, we have gone over some of the most important and influential aspects surrounding silver and what everyone needs to know about its use case within renewable energy, solar panels, and electronic vehicles.
By looking at all of these aspects surrounding the metal, investors can make a well-educated decision as to how and how much they want to diversify in silver.
If anyone is curious about making investments in silver, GSI Exchange offers a quick and easy way through which anyone can securely purchase metals at the lowest possible prices and where they can get access to silver coins and bars.
Since it was originally founded on August 1, 2024, it has managed to grab the attention of many investors.
The team behind the GSI exchange is large and has over 75 years of combined experience, and the exchange is also a BCA AAA-rated company. Its team has placed over $1 billion in commodities and precious metals transactions globally as well.
Photography by: Courtesy of GSI Exchange
