jackfutu18
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The world still put an eye on what is happening in Japan. Back to the precious metal market this week, "Energy's Silver Lining" will be the topic that we will discussion and get information from The Bullion Report.
Investors are keeping a watchful eye as Japan rebuilds post-earthquake. From the initial disaster and the tsunami to the nuclear power plant damage that followed, anticipation has been building for the potential within the recovery for new and potentially safer energy forms. How does that relate to precious metals? Let’s review the links that might exist between renewable energy and silver.
Probably the first thing to dispense with is why this is important to consider now. There are a couple of key factors in the current climate that make this an interesting topic to explore. The first is a gimme – famed silver analyst Ted Butler has often discussed the impact of solar energy panel growth on silver prices. Any time there is an increased demand avenue for a commodity there is a dynamic shift that can raise prices. It comes down to the fundamentals of supply and demand.
What exactly is the role of silver in solar energy?
Basically, solar panels or solar cells try to harness rays from the sun, and the energy from free electrons. The most basic cell – known as a photovoltaic cell – is exposed to light. A semi-conductor material, like silicon, is employed in capturing the energy for electricity generation and silver paste is used in nearly 9 out of every 10 of these silicon-based solar cells, according to the Silver Institute.
So silver, even in a modest capacity, can be applied to green or alternative energy sources. And right now, new discussions have erupted concerning the applications of renewable electricity generation. Japan is facing a horrifying situation in which their nuclear reactors, disrupted and felled by natural disaster, have wreaked havoc. Trace amounts of radiation have already made their way into food supplies and seawater. The potentially heath-compromising aftereffects of near or total meltdown will likely be felt for years. So not only will Japan have a compelling reason to look for alternatives to nuclear power generation but so will other nations who are watching the disaster unfold from a distance. Pundits from most western nations have expressed concerns over their own domestic nuclear power, and started to talk about looking for replacements. For the time being that could mean coal and natural gas on the fossil fuel front, or a further push towards wind and solar energy.
These talks have already been underway for many nations. The large shift in rural to urban populations for China and India had previously fired arguments supporting a turn towards renewable energy. After all, more people means more electricity and everyone is in agreement that fossil fuels are in finite supply. So, there already was a solid reason to support a move towards increasing things like solar power generation, it just might get fast-tracked now that security and health are taking headlines again.
What about other fossil fuel consumption?
If we are already talking about solar cell energy and the potential for additional silver demand there, we might as well touch on the topic of electric cars. If engineers and scientists are already renewing a push towards energy independence, then the latest round of political tensions in the Middle East could provide motivation to develop things to pare even more petroleum demand. That means replacing the need for fuel for cars, at least in part. Hybrids or fully electric cars also have unique metals needs. Of course, the impact on platinum-group metals (PGMs) would be a partial or complete replacement of demand for catalysts in emissions reduction. What greener cars lack in PGM demand, they might make up for in better quality electronic components, connectors, and better conductivity needs. That means less corrosive materials like gold or silver to make longer-lasting plated or solid metal components. Silver already enjoys significant industrial demand; this would just be another consumptive factor to consider.
Energy's Silver Lining
Investors are keeping a watchful eye as Japan rebuilds post-earthquake. From the initial disaster and the tsunami to the nuclear power plant damage that followed, anticipation has been building for the potential within the recovery for new and potentially safer energy forms. How does that relate to precious metals? Let’s review the links that might exist between renewable energy and silver.
Probably the first thing to dispense with is why this is important to consider now. There are a couple of key factors in the current climate that make this an interesting topic to explore. The first is a gimme – famed silver analyst Ted Butler has often discussed the impact of solar energy panel growth on silver prices. Any time there is an increased demand avenue for a commodity there is a dynamic shift that can raise prices. It comes down to the fundamentals of supply and demand.
What exactly is the role of silver in solar energy?
Basically, solar panels or solar cells try to harness rays from the sun, and the energy from free electrons. The most basic cell – known as a photovoltaic cell – is exposed to light. A semi-conductor material, like silicon, is employed in capturing the energy for electricity generation and silver paste is used in nearly 9 out of every 10 of these silicon-based solar cells, according to the Silver Institute.
So silver, even in a modest capacity, can be applied to green or alternative energy sources. And right now, new discussions have erupted concerning the applications of renewable electricity generation. Japan is facing a horrifying situation in which their nuclear reactors, disrupted and felled by natural disaster, have wreaked havoc. Trace amounts of radiation have already made their way into food supplies and seawater. The potentially heath-compromising aftereffects of near or total meltdown will likely be felt for years. So not only will Japan have a compelling reason to look for alternatives to nuclear power generation but so will other nations who are watching the disaster unfold from a distance. Pundits from most western nations have expressed concerns over their own domestic nuclear power, and started to talk about looking for replacements. For the time being that could mean coal and natural gas on the fossil fuel front, or a further push towards wind and solar energy.
These talks have already been underway for many nations. The large shift in rural to urban populations for China and India had previously fired arguments supporting a turn towards renewable energy. After all, more people means more electricity and everyone is in agreement that fossil fuels are in finite supply. So, there already was a solid reason to support a move towards increasing things like solar power generation, it just might get fast-tracked now that security and health are taking headlines again.
What about other fossil fuel consumption?
If we are already talking about solar cell energy and the potential for additional silver demand there, we might as well touch on the topic of electric cars. If engineers and scientists are already renewing a push towards energy independence, then the latest round of political tensions in the Middle East could provide motivation to develop things to pare even more petroleum demand. That means replacing the need for fuel for cars, at least in part. Hybrids or fully electric cars also have unique metals needs. Of course, the impact on platinum-group metals (PGMs) would be a partial or complete replacement of demand for catalysts in emissions reduction. What greener cars lack in PGM demand, they might make up for in better quality electronic components, connectors, and better conductivity needs. That means less corrosive materials like gold or silver to make longer-lasting plated or solid metal components. Silver already enjoys significant industrial demand; this would just be another consumptive factor to consider.
