Green Energy & The Silver Market

What does green energy have to do with silver?

We are now months deep into the worldwide pandemic of COVID-19, and silver supplies are still not in the clear. We saw an early shortage as demand surged past the supply that was in the retail market, then we saw it loosen up a bit and start to flow as more economies opened up, allowing mints, mines, and suppliers to open up again.

In the last weeks, we have started seeing the supply tighten again as mines around the world are still not fully operational, the COVID-19 numbers still climbing and demand for silver has not slowed. We are now seeing delays from suppliers on Silver Eagles, and there are many professionals saying this is only the start of a long bull run for silver. The recent situation with COVID-19 is one reason for the latest surge but not the only factor.

With the push to use more green energy, such as solar power and battery-operated vehicles, silver has seen a steady demand increase YOY as well. All these companies that produce green energy rely heavily on silver supply to make their products and are not as sensitive to the price of silver when it moves higher; in other words, they keep buying. Usually, when price moves higher demand slows, but with corporations that produce useful products at a growing scale, they cannot afford not to have the raw goods that are necessary to make their products. Many speculators say green energy will be a major driver in silver supply continuing to tighten, which could drive prices continually higher in the coming years.