The demand for silver in solar (photovoltaic) cells is growing exponentially!
According to the Silver Institute, worldwide consumption of silver for solar cells reached a record 76.6 million ounces in 2016.
Demand is up 43% from the previous year… And for 2017 and 2018, that number is expected to be approximately 100 million ounces!
Current global silver demand is about 1 billion ounces. This equates to 10% of silver demand heading into solar cells.
That’s a big deal – 10 years ago, this number was near zero!
Real demand for silver and its uses are surging higher.
We know that there is a real silver deficit. The fact is that the amount of silver mined and produced isn’t even close to what is consumed.
The sweetener for silver investors is that the supply line, the exploration side of the business, and new mines were all but destroyed during the bear market years of 2012 to 2015.
This means that silver is about to see an enormous price reset. The markets simply can’t allow the silver price to remain at these low levels.
Sentiment, by the way, couldn’t be worse for silver investors, which makes it a screaming buy.
Silver coin sales at the U.S. Mint just reported numbers that hit a 10-year low!
***In September alone, just 320,000 ounces were sold – that’s 81% lower than a year ago.
Gold, by the way, saw a year-over-year decline of 88%!
Keep in mind that gold just made a new bull market high on September 7th, so this is a bull market that continues to find an excuse to rise, despite disbelief from even its most loyal investors, the physical coin gold/silver bugs.
When I see silver bugs throwing in the towel at exactly the time we should be backing up the truck, I have to admit that the silver investment thesis is making me extremely greedy right now.
We’re seeing exploding demand for industrial use and a collapse in demand from physical coin investors at a time when the U.S. debt just surpassed $20 trillion.
The ready-to-sell supply of silver won’t be able to take much, so you can imagine what will happen when these coin investors come back to the market when silver rallies past $20, then $25, and ultimately $50+ per ounce over the next one to three years.
1. Buy physical silver. It’s dirt cheap right now and is a great long-term holding for us. We buy from MilesFranklin.com and DBSCoins..com.
2. Consider shares of Silver One Resources (TSXV: SVE & US: SLVRF). They have a massive silver project in the state of Nevada and are backed by all the top names in the industry, including Keith Neumeyer, who is the founder and CEO of the purest silver producer on Earth!
3. Consider shares of First Majestic Silver (NYSE: AG). If silver goes, AG could outpace it in percentage gains by 3x to 7x, in our analysis.
I’m most bullish on Silver One Resources for the simple fact that it’s been beaten down due to its status as being a junior silver stock.
However, if you look at management, you have the top people running the company.
Their acquisition this year in Nevada made them the most serious silver junior in the entire sector.
You have a near-term production asset right in the heart of silver country, the silver state of Nevada.
The company just raised $4.3 million, which gives management the opportunity to fully implement their aggressive growth strategy.
In my opinion, we want to own silver, and Silver One Resources gives us some of the best leverage and upside potential for this space.
Share Disclosure: I am long Silver One and First Majestic.