As the solar panel industry expands, silver will also enjoy greater industrial demand. Global solar photovoltaic annual installed capacity is expected to hit 112 gigawatts by 2021, with cumulative increase in solar electricity capacity of 506 gigawatts over the next five years, according to GTM Research.

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.

“We’d also point out that that the Commitments of Traders data shows long positions held by speculators have fallen sharply over the past two weeks. Don’t get us wrong; they haven’t suddenly become wildly short. However, the positioning within silver right now is no longer anywhere near as bearish as it was last month,” according to CNBC.

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