The price of silver and silver panels.
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Dennis and Ann I agree with you both; as David Morgan says, industrial demand for silver is going way up…about 54% in 2010? and is forecast to be 666 million oz. of 900 mil-1 billion oz. produced and recycled annually. If solar panel makers ever decided not to use silver, what would they substitute with? China has announced that it wants to produce 35 gigawatts of solar energy if I’m correct, up from 20 gigawatts which was their previous target.
If they choose not to produce any more solar panels, 1 ounce of silver will still cause my $500 google phone to work 63x over – roughly 1/2 gram in cell phones…at $100/oz that would equate to about $1.50 or so per phone, on a $500 item.
Thanks Big and Steve. I’ve always wondered what upward price increases would do to the solar industry. Sure did not think that the effect would be that dramatic , as say I phones and pads etc. Heard recently that solar could possibly consume upwards of 150 million ounces annually in the next few years if the trend continues.
As Steve pointed out it is complicated.
A few points by asking questions…..
Who needs a fuel efficient car when gas is cheap?
Who needs a solar panel with cheap electricity?
When the cost of gas goes up do people discard the ’73 Lesabre for a Pinto?
When electricity bills go on a dramatic rise do the installers charge more?
What is the cost of savings?
Simply put silver as far as use in this industry is solid.
There is no viable replacement within price range ( or even close) that will adequately replace silver.
Caveat….that does not mean panels will be made with tin that are said to be silver.
Interesting Dennis M
So one would conclude that Ag might be a good place to b err from an investment prospective.
I don’t think we need to worry about $100 silver for years to come.
Paul what price is silver if the fast food workers on strike today obtain $10/hr as a result of their demands for $15.
Chart the price of gold and minimum wage.
The correlation is telling.
http://www.silverdoctors.com/chart-of-the-day-federal-minimum-wage-in-gold/
Very interesting chart. Here in Ontario the minimum wage is above $10 already.
The telling part is the stair step rise in wages v. gold but it was during a period when gold was fixed at $35. Since gold has been unleashed minimum wage increases may look good nominally on paper but they perform poorly v. real $. What we really want is purchasing power not more digits per hour.
What we want is affordable power not cheaper solar panels.
And that is so true!
Yeh but you are not in NYC or LA.
And, it will get worse!
Paul L…watch Paul R. Krugman’s discomfort as he is schooled that economics has more to do with economics as compared to propogandish branding..a very enjoyable clip for those who read Krugman to sharpen critical thinking skills
http://www.youtube.com/watch?v=N8LmE5cfQKA
I would suggest the use of Ag in solar panels in this environment is inelastic relative to the solar panels cost.
Although a somewhat significant component in the cost of the panel…the question becomes what do you manufacture with instead of Ag?
Efficiency suggest lower cost metal will not produce and what is the sense of an even higher priced metal being utilized.
With the greenies attacking fossil fuels at every chance maybe we should focus more on the cost of what electricity will be near term before we decide whether Ag is too expensive to be a considered inclusion in a solar panel.
It is all relative.
If silver is $100/oz it is a cheap component to a panel with EPA closing coal burning power plants left and right.
It can be said the EPA did not shut the door….more correctly the EPA shows the coal burning plant the door…http://www.youtube.com/watch?v=DpTIhyMa-Nw