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What advantage does the silver bullion market have over others?

*Dow Theory Letters, by Richard Russell, June 13, 2011

”Silver — I want to talk about silver.  Almost all informed scientists state that as the population of the world grows, we’re going to need a lot more energy.  Nuclear will be a big help, but because of the disastrous recent experience in Japan many people distrust and will vote against nuclear.  Windmill power will help, but to manufacture windmills requires a good deal of rare earths.  Here again manufacturers are stymied, that is, unless they buy their windmills in China (China has a virtual monopoly on rare earths).

One of the areas of electricity generation which is very practical and real is the solar panel.  Solar panels require silver.  Thin film silver requires materials that are more scarce than silver, tellurium and iridium.  And so-called organic thin films which have many advantages over solar require a LOT of silver as well.

Thus, in future years as the demand for production of sustainable energy becomes increasingly insistent, there will be a huge demand for silver.  So for now, solar and silver are linked together like brothers and sisters.  The rising demand for solar energy will put silver in the spotlight as a much-wanted material.  Unlike gold, silver will enjoy a huge industrial demand.”


*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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