It’s easy to forget silver is more than a precious metal. It offers the dual purpose of an industrial metal that’s also critical to the ongoing global energy transition. That said, it assists with the transition in three key ways.
Silver’s mission-critical inclusion in the metals that are the forefront of the transition can’t be overstated. The precious/industrial metal will continue to serve a key role in the development of technology used in helping countries to meet their reduced emissions goals.
“The global energy transition requires many critical materials, including silver, which plays a significant role,” said Maria Smirnova, managing director at Sprott Inc., senior portfolio manager & chief investment officer for Sprott Asset Management. “Although renewable power generation and battery storage technologies may conjure visions of cobalt, lithium and nickel, we would argue that silver plays an even more fundamental role across several clean energy technologies.”
In a Sprott Insights report, Smirnova noted that the white metal will play a major role in the following industries:
- The Solar Energy Industry/Photovoltaics: Silver’s paste can capture electrons produced from sunlight striking cells. That makes its conductivity effective in solar energy technology such as solar panels.
- The Automotive Sector and Electric Vehicles (EV), and Associated Infrastructure: Its high conductivity properties as well as its ductility can help make EVs more efficient with its lighter weight and strong electrical connections to batteries as well as other EV components.
- Artificial Intelligence (AI): The increased usage of AI will translate into a higher demand for silver. This includes usage in transportation, nanotechnology, biotechnology, healthcare, consumer wearables, computing and energy storage in data centers.
Get Silver Exposure With or Without Bars
Getting silver exposure doesn’t mean investors will be subjected to the logistical issues that come with storing silver bars. They can still get exposure with funds like the Sprott Physical Silver Trust (PSLV).
The fund provides exposure to the precious metal without the additional hassle of storing it. It invests in unencumbered and fully allocated London good delivery silver bars. Additionally, shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions) if they want a more tangible investment experience.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
