Q2 is over and done with, but the trends and key events it brought with it are still impacting the market. To get a better understanding of how those factors affected — and continue to affect — the silver market, Silver Investing News (SIN) sat down to chat with Chanin.
Touching briefly on factors that may push silver prices up in the long-term, Chanin highlighted three potential catalysts:
- Solar: “I think that solar is going to be the main driver [of silver] going forward,” Chanin said, explaining, “one reason I’m so excited about solar is that the technology” has reached the point where it uses “the least amount of silver to get the maximum output.” That means the sector is unlikely to reduce its dependence on silver unless it decides to look for an outright substitute.
- Less scrap: Largely due to such increased efficiency, “very little scrap is coming onto the market” as it’s “uneconomical to look for scrap” in some components that previously were good sources.
- Fewer operating mines: Finally, Chanin said that even though demand for silver is on the rise, many companies “are either taking their mines out of production, or putting them on care and maintenance” as low silver prices are making them uneconomic.
Assuming silver demand does eventually outpace supply, Chanin sees even more factors perhaps pushing prices up even further.
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