Solar Panel Technology Boosts Silver Demand as Supply Deficit and Industrial Needs Loom
Silver settled at 69976, driven by robust industrial demand and limited supply. Efforts to reduce carbon emissions have accelerated the adoption of solar panel technologies, leading to higher silver conduction requirements and significant demand upgrades.
Forecasts now predict solar panel companies to account for 14% of global silver consumption, a remarkable increase from 5% in 2014.
Simultaneously, silver output is projected to rise by a slower 2%, raising concerns of a fresh supply deficit. Traders dismissed signs of cooling in the US labor market and slightly softer inflation readings.
Hawkish statements from the Federal Reserve reignited fears of prolonged elevated interest rates.
University of Michigan’s preliminary estimates indicated a slight dip in consumer sentiment, with the index falling from 71.6 in July to 71.2 in August.
Despite this decline, the gauge for current economic conditions rose to 77.4, the highest since October 2021, from 76.6. Consumers noted substantial improvements compared to three months ago, while the expectations subindex declined to 67.3 from 68.3.