While some observers may be worried about policy and tax incentives under President Donald Trump’s administration’s America First Energy Plan, which lacks any mention of renewable energy, the ongoing improvements in technology and rising economies of scale could continue to support the solar industry, along with silver demand.
The solar segment is not limited to the U.S. either as the international community has increasingly turned greener. Many overseas economies are adapting solar panels and other renewable energy sources to reduce emissions in an attempt to combat global warming pressures. For instance, China, the leader in solar energy, continues to expand clean energy initiatives with photovoltaic capacity.
“A combination of higher inflation, a weakening US dollar (in first half of year) and improving manufacturing growth is likely to see silver prices trade in the $20-22/ounce range in 2017,” Gold projected.
Comex silver futures are currently trading around $18.18 per ounce, with the ETFS Physical Silver Shares (NYSEArca: SIVR) up 13.2% year-to-date.
For more information on the silver market, visit our silver category.