The U.S. Dollar gave up early gains overnight and now seems to be in retreat mode, as investors wait to see if the President announces new tariffs on about $200 billion of Chinese imports.
The weaker Dollar Index is helping the price of Gold stay afloat but still is having difficulty staying above the spot level of $1,200 dollars.
U.S. 10-year Treasuries above the 3 percent level their highest in four months.
The continued talk of an escalating trade war have investors heading for the sidelines taking a wait and see posture before taking on any large positions.
We will see what effect, if any, there will be on the price of Gold with the first of three Brexit summits set for the coming week. European Union leaders hope to reach an agreement within the next two months over the terms of Britain’s departure.
Green Energy’s Silver Lining
Silver has many more uses than in just coins and bars. In fact, more than half of the world’s silver is actually used for industrial purposes as it is used in X-rays, low-e windows, and even solar panels. As it turns out, without silver, solar panels wouldn’t exist.
Silver is a unique metal. It has the highest electrical and thermal conductivity of all metals, and it’s the most reflective. These physical properties make it a highly valued industrial metal, especially when used in solar cells. Silver is actually a primary ingredient in photovoltaic cells, and 90% of crystalline silicon photovoltaic cells, which are the most common solar cell, use a silver paste. When the sunlight hits the silicon
cell it generates electrons. The silver used in the cell works as a conductor to collect these electrons in order to form a useful electric current. The silver then transports the electricity out of the cell so it can be used. Further, the conductive nature of silver enhances the reflection of the sunlight to improve the energy that’s collected.
The average solar panel actually uses about two-thirds of an ounce of silver, which is about 20 grams. That might not sound like a lot, but at around $14 an ounce it contributes more to the cost of solar than it does to the other industrial products that use silver. For example, a laptop only contains 750 milligrams to 1.25 grams of silver while a cell phone contains just 200-300 milligrams of silver, so silver is a tiny fraction of the cost of those devices.
An ounce of silver in every solar panel may not sound costly given today’s silver spot price, but silver’s cost contribution to solar panels outweighs its proportional expense over virtually any other application it has other than perhaps jewelry, silverware, or in .999 fine bullion coin or bar form.
With the economy expanding and energy costs rising, the demand for new solar panels is increasing and driving the demand for silver used by the solar industry. This increased demand for silver could have a real impact on the solar marketplace in the years to come as solar installations could push up the price of silver.
Have a wonderful Monday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.