Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Amidst OPEC Drama, Solar is to Silver What Ethanol Is to Corn

Commodities / Gold and Silver 2011 Jun 30, 2011 - 07:29 AM GMT

By: Dr_Jeff_Lewis

Commodities

The state of global affairs has never been in such disarray.  Major governments are going bankrupt, inflation is running rampant in a majority of the countries that line the planet, and relationships between nations have never been so heated.

This past week, the Obama Administration took a direct shot at OPEC, leading the charge in a release of emergency oil reserves intended to keep prices low against falling supplies.  OPEC failed to increase oil production, and one holdout, Iran, turned the event into political drama.  Now some are wondering if the administration’s move may threaten the relationship between the United States and Saudi Arabia. 


Saudi Arabia has been the United States’ one ally in OPEC since a decades’ old policy of defense agreements for oil first matched the unlikely pair in the 1970s.

Amidst the riff-raff of international politics, one thing is certain: the uncertainty of oil prices is sure to boost silver demand, particularly from alternative energy sources.

Solar and Silver

Just last week, we notified our subscribers to a booming solar energy market, enabled by easy to access cash from the Federal Reserve and tax credits from the US Treasury.  Thanks to tax credits and rebates worth 30% of the purchase and installation price of solar panels, new financing deals have made direct solar investment a real possibility. At the same time, the fundamentals lining the current silver price have never been better.

It’s safe enough to say that solar energy will set a price floor for silver.

Thanks to a tax credit worth 30% of the solar panel purchase price from the US Treasury, and low-cost, long-term financing, more companies are getting into the solar lease business.  Google will fund a $300 million residential solar panel investment.  Bank of America raised a $2.6 billion fund to do the same for commercial buildings.

While the price of silver rises, solar energy and borrowing costs have plummeted.  Some states, such as California, have taken the market to a new level.   State incentives mean that systems that become economically efficient after 15 years in some areas are paid off in as little as 7 years.  Individuals looking to make the switch can do so with zero-money down from solar panel lease and installation companies that are taking the market by storm.

Fundamentals Remain Strong

Through 2015, the silver industry now has a very artificial, but beneficial, price floor at the current price of $35 per ounce.  The tax credits for solar expire on December 31, 2015, though there is little resistance to continuing the program under the guise of energy independence.

Should silver prices double in the same time, the net-effect on solar panel costs will drop through 2017, when solar panels are expected to cost just $1 per watt.  As silver is consumed in solar production, the price for silver will rise, even as solar panel investments make more sense in a low-interest rate environment.

We stand by the reality that inflationary pressures will drive future silver prices.  But now silver has a new outlet, propelled by monetary inflation and the necessary rise in energy prices that come with it. 

This is a no-brainer for silver investors.  Just like subsidies for ethanol sent the price of corn soaring, subsidies for solar investments will drive silver prices.  Silver is, after all, the only component in solar panel developments that is rising in price.  Get ready for the next move up.

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

    Copyright © 2011 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules