‘Solar is the 800-pound gorilla’ of silver demand - Peter Krauth, editor of Silver Stock Investor

Silver is increasingly becoming an industrial metal, said Peter Krauth, editor of Silver Stock Investor - noting industry now consumes 60 percent compared to 50 percent a few years ago.
In mid-January Krauth spoke to Kitco Mining at the Vancouver Resource Investment Conference 2024.
In Krauth’s view, industrial demand forms a price floor for silver, “and it's actually when investment demand comes back in a big way, that's the wild card that starts to really push silver prices higher.”
As to what extent interest rate cuts will influence silver prices, Krauth said if gold pushes higher, silver will likely follow. “It usually does with a lag… but it will catch up to gold and then it will absolutely outpace gold. It has done that multiple times historically. I expect that will happen again this time around,” he said.
Krauth said the silver market is ripe for consolidation, with the pure silver explorers likely to be targets before companies with polymetallic deposits. “The higher-quality ones and in better jurisdictions are going to be become irresistible.”
Krauth believes the disconnect between undersupply and overdemand will eventually lift silver prices. Last year, the Silver Institute predicted industrial demand would grow by 4%, when it actually grew 8%. It expected solar power installations to require 160 million ounces, when the actual number was 190 Moz. Meanwhile, silver output in Mexico, the top producer, was down 12% in 2023, and Peru’s production was at 20-year lows.
“Solar is really the 800-pound gorilla, we can’t ignore it,” Krauth said, noting that new solar technologies are requiring 50 percent more silver per panel in some cases.
“Even if the overall production of panels were flat, we're going to need a whole lot more silver, just for solar. It's going to have to come from somewhere. We've had three years
Of deficits, there's going to be a reckoning and the silver price will absolutely react,” he said.
Coverage of the Vancouver Resource Investment Conference 2024 was sponsored by Snowline Gold.
0:00 Silver market
2:55 Silverware
4:59 Interest rates
6:21 Silver equities and M&A
11:48 Stock picks
14:28 Mexico, Peru, Bolivia
16:13 What to watch for
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[@henrykonkel5065]

PATIENT?!!!! Ive been patient for 20 years!!!!

[@philsort6580]

Could you imagine oil production down 12% with demand up double digits and the see the price of oil plummeting. Only silver that happens too!

[@billhammett174]

Is supply elastic? Could have asked that question...

[@scottyflintstone]

Best!!!

[@scottyflintstone]

Holding silver miners but not going to average down

[@Calmwater7]

Geez, these guys don't know that the military need for silver in missiles is helping to keep the price down?

[@johnvandegraf2000]

the miltary dont care ,the taxpayer pay the bill!

[@justfedup]

Apparently it’s not that much in the missles, like 15 oz and not 3/400 ozs

[@Bigchuckers]

No one in the military cares about cost control.

[@johnvandegraf2000]

looks like dont know how much they need

[@RR-qj1ji]

@@justfedup i have tried to find that data ? do you have somewhere i can check that out ?

[@zsoltszopko9817]

What about Vizsla silver??

[@MrAnderson3]

Can someone explain the theory of why precious metals would go up in a low interest rate environment? I would of thought it should be bearish for PMs as mire liquidity is easily available thus moving into speculative or business investments rather than the precious metals market This is a serious question

[@rudeawakening3833]

That is a great question ; it’s been explained best by like Luke Grohman and many others on The David Lin Report . In short - the interest rates go down , the US dollar DXY Index drops below 100 , and the quantitative easing ( money printing ) goes wild ; hence gold and silver go skyward . You can also check these facts for yourself but the men/ women with Masters degrees and Ph/ D’s do a way better job than I . I hope that this helps . ( on a SMALL scale - YOU look daily at the DXY and typically on a daily basis they correlate opposite . ) Peace ☮️

[@adriaan2802]

Silver only will go up, if mines will be depleted. There is still to much silver it seems…As long as it isn’t scarce, it will not climb..until then, even copper or aluminum can outpass silver..

[@gregorygreene1940]

We are in a global recession so industrial demand for silver is way down. Combine that with people at the retail level selling silver like crazy to make ends meet and you have a recipe for lower spot prices. Until the global economy comes back silver is going nowhere.

[@christianwitness]

It is easy to be wrong in this environment. I be bullish...😂

[@scottd8624]

How much industrial demand for silver in the 80s when silver hit $50?

[@cvgguy98]

Ever increasing amounts of silver used in missiles (lots of them being fired these days) medical field due to anti-microbial properties, even just the pressure of upward moving gold csn gave dramatic impacts on silver especially as the Fed bankrupts the US , silver becoming more scarce in mining, and more...good time to stack in preparation for it's run up.

[@dennistupper8262]

Dont forget that Silver is a Mining Bi product so if Mines slow then the amount of silver being mined will slow drastically and wouldnt keep up with demand even worse... So I dont see even a slower economy is going to help the silver market... But like you said some stackers are being forced to sell. Sad for them. I always tell new stackers only put away silver you wont need for a very long time or ever at all. Look at it as the Hedge for the complete collapse of your currency.

[@rickhayes-oh2zm]

silver and gold is money.

[@maximustruth9547]

Heard him mention two properties without even naming the country or north south east west part. Not gonna hit Google for 20 min. to figure it out. Sure, Canadians big into mining. We all know. Even interviewer didn't stop him and ask him. Poor communication and neither one Gen Z or Millennials.

[@darylroughley2807]

Silver prices are being held down by industrial demand, no one wants to pay a price of silver to create their products that the market should demand…market gaming at its worst, still, one day it will shine.

[@reinhard7572]

Silver is Manipulated to no end. None of these demand arguments mean anything. $23 silver for another 10 or 15 years.

[@oscar-bc8dy]

Could be. But if the forecast solar demand comes to pass. AND a substitute for silver is not found then it heads much higher. My finger in the air guess is within 2 years and I'd lean to this year for the start.

[@TheGreenfrog140]

Since so many years you guys have been claiming that silver prices will shoot up! But bitcoin price has been going up and up and up .. silver going nowhere..

[@stephanvogt8038]

They work for their own pockets and the banks and hedgefonds.

[@AmitsGotSomeJewels]

You should rewrite the title like this: "‘SOlaR iS tHe -800-poUND gOrILlA Of SiLvER dEmAnD"

[@christianwitness]

Why?

[@AmitsGotSomeJewels]

@@christianwitness Because if silver is an industrial metal why didn't it go up and make new all time highs like the others.....Newsletter writers like these are garbage and stealing a living. They've been touting the solar trope for years and it has meant ZERO to the price.

[@viceroyx]

Solar is like EVs, largely foolhearty

[@darylroughley2807]

Have solar myself, yes, l save on my quarterly bill, new generation of panels requires twice as much silver; still, l can’t see silver shooting off yet; as for EV’s; a total joke and tort.

[@puristM]

its taking way too long. not worth the wait.

[@rickhayes-oh2zm]

silver is an inflation metal.

[@quant2011]

Im shocked that kitco talks about silver. not bitcon? why you dont hype BTC in every interview? whats wrong with you? LOL

[@lepton31415]

lol

[@Bigchuckers]

Notice what kind of miners sponsor these shows... Find a finance channel that isn't sponsored by something gold, but talks constantly about gold investing.

[@bokkenrijder172]

Still pumping “solar” and “silver?” 😂 Remember: “any day now….” 🤣 I just can’t take these people or this channel seriously anymore. Such a joke! Next up: pumping BitCON.

[@AmitsGotSomeJewels]

Another garbage newsletter writer.....switch him off people, only then, will you become rich.