Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Will Import Taxes on Solar Panels Hamper Silver Price Ability to Rally?

Commodities / Gold and Silver 2014 Jun 11, 2014 - 03:13 PM GMT

By: Bob_Kirtley

Commodities

Background
Investors are disillusioned by the inability of silver prices to rise to higher ground as silver enters its 4th year of looking anything but sparkling. As a silver bug I think that we have suffered long enough but finding the ignition that will set silver on fire is proving to be difficult. There are a myriad of factors to consider before making an investment in silver such as: supply and demand, price manipulation, industrial usage, jewelry, investment, various metrics such as the gold/silver price ratio, etc. The list is almost endless so today we will look at just one of them which we think is important; the imposition of import duties on solar panels.


US Import duties on Chinese solar panels.
On 03 June 2014 the United States imposed new import duties on solar panels imported from China. The Commerce Department has taken a stance in that they are of the opinion that these panels were produced with the aid of government subsidies which gives Chinese manufactures the upper hand when competing with the home based manufacturing industry.

Back in December 2012 the US imposed duties of about 30 percent on solar panels made by Chinese importers. However, the Chinese managed to dodge this imposition by having the production of the cells carried out elsewhere, such as Taiwan.

The value of these imports from China increased to around US$3.0bn in 2012, provoking the US to impose duties averaging about 31 percent on panels emanating from China at that time. Further anti-flooding duties are also expected to be announced next month so this figure of 30% could go even higher.

This is important as according to the Silver Institute:
 “silver is a primary ingredient in the photovoltaic cells that catch the sun’s rays and transform them into energy. 90 % of crystalline silicon photovoltaic cells (the most common cell) use silver paste and over 100 million ounces of silver are projected for use by solar energy in 2015.”

If these import taxes are successful in their application then the corresponding price increase could be a deterrent to the user who may well want to consider alternatives to solar energy. In many parts of the world it is a marginal decision to use solar panels and such a sudden increase in price could be the nail in the coffin for them. Should investors turn away then the estimated requirement of 100 million ounces could be severely dented. A lot will depend on just how ‘green’ the purchasers are, some will go solar almost regardless of the cost as green energy forms an important element of their personnel objectives. However in the competitive world of business these price increases may be too much to bear and the installation of solar panels may be shelved until they become more competitive on a life cycle costing basis.

The counter balance to this argument is that China is suffering from the tremendous problem of pollution and they themselves may have to increase their own exposure to solar energy in order to achieve some respite, putting pressure of silver prices.

Chart Depicting Silvers rise and fall

This 4 year chart shows silvers meteoric rise and subsequent fall back to where this rally started. The downward trend looks to have flattened out into a consolidation pattern with a break out, either way, on the cards. The RSI is heading north out of the oversold zone suggesting higher prices in the short term and the STO has bounced indicating higher prices in the short term.

Conclusion
I am a silver bull, but not a perma-silver bull, as I believe there is a time to be fully invested and a time to take shelter in the form of cash. At the moment we are not prepared to adopt a Cavalier approach to silver investment or their associated producers especially now as we into the relatively inactive summer period for the precious metals sector.

The lion’s share of our portfolio is in cash and we admit to finding it difficult being patient as we wait for the real bottom to form and the opportunity to buy at rock bottom entry levels. We are aware that this down trend has existed for almost four years and has tested the patience of the most ardent bulls, however, that’s not a reason to hit the acquisition trail with gusto.

Got a comment, fire it in, especially if you disagree, the more opinions that we have, the more we share, the more enlightened we become and hopefully the more profitable our trades will be.

Take care.

Bob Kirtley
Email:bob@gold-prices.biz
URL: www.silver-prices.net
URL: www.skoptionstrading.com

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. Winners of the GoldDrivers Stock Picking Competition 200

DISCLAIMER : Gold Prices makes no guarantee or warranty on the accuracy or completeness of the data provided on this site. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This website represents our views and nothing more than that. Always consult your registered advisor to assist you with your investments. We accept no liability for any loss arising from the use of the data contained on this website. We may or may not hold a position in these securities at any given time and reserve the right to buy and sell as we think fit.

Bob Kirtley Archive

© 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