Why Silver Could Soar Soon
Say that three times fast!
Silver is no longer just a “safe-haven” asset-it’s a critical player in today's booming industries–from electrics to renewable energy. With record industrial demand and a growing supply deficit, the window to buy silver at a price this low may not last. Experts at UBS and Bloomberg are sounding the alarm: silver's upside potential is significant, and waiting could mean missing out. Here's why you should act now to capitalize on silver's bright future.
Silver’s Critical Role in a Connected, Energy-Hungry World
In an increasingly digital and connected world, silver is a behind-the-scenes workhorse that ensures that virtually ALL consumer electronics work. Its unmatched conductivity, reliability, and versatility make it crucial for smart phones and other modern technology. As demand for smarter, faster, and more energy-efficient devices continues to grow, so too will the demand for silver.
And it’s not just handheld consumer electronics that require silver. One particularly exciting development is the use of silver in electric vehicle (EV) batteries. According to a recent article in MarketWatch, Samsung's latest EV battery technology has sparked excitement among silver bulls. The innovative design requires significant quantities of silver, positioning the metal as a key player in the growing EV market. With global demand for electric vehicles expected to skyrocket, silver's usage in battery production could lead to sustained price increases.
In addition to its role in EVs, silver is also critical in the production of photovoltaic cells used in solar panels. As the world shifts towards renewable energy, the demand for solar power continues to rise, further driving up the demand for silver. These industrial uses–coupled with its use in consumer electronics like smartphones and tablets–have created a robust base of demand that is expected to underpin silver prices for years to come.
And, Sadly, There’s Just Not Enough Silver…
In April, Bloomberg reported on the growing supply deficit of silver, with record levels of industrial demand expected to widen this gap even further. The article emphasized that global silver production has struggled to keep up with the metal’s increasing use in manufacturing and technology. This dynamic is likely to support silver prices moving forward, as supply constraints push prices higher.
Bloomberg also highlights that the silver market’s fundamentals are strong, with increasing demand from sectors like clean energy and electronics. Their analysis suggests that the combination of high demand and limited supply is a key factor driving silver’s long-term price outlook.
UBS Takes a Shine to Silver
UBS, a global leader in wealth management and financial services, has consistently highlighted the upside potential in silver, particularly given its strategic importance in industries like renewable energy and electric vehicles. More recently, analysts suggested that silver is a sterling buy for a long-term hold. They pointed to silver’s dual role as both an industrial metal and a store of value, which provides it with a unique advantage in times of economic uncertainty. (At Lear, we call that the “Double Play“.) According to UBS, investors who recognize this dual potential stand to benefit significantly, especially as global demand continues to outpace supply.
Why Not Seize This Opportunity?
Silver’s role in modern industry cannot be overstated. Given the unprecedented demand for silver across multiple industries, combined with a supply deficit that shows no signs of abating, the case for silver is stronger than ever. It is essential to the future of global industry and there’s no way to make more of it.
At the time of writing, silver is trading under $29 and UBS is forecasting a value of $36-$38. This could the perfect time to “buy low and sell high”. With major financial institutions like UBS and authoritative sources such as Bloomberg underscoring the strong fundamentals of silver, why wait any longer to add some silver to your asset mix?