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Barron’s: Silver to Benefit from Global Solar Surge. It’s Time to Buy Again, Goldman Sachs Says

Article by Callum Keown in Barron’s

Silver is set to benefit from a global solar energy drive and it is once again time to buy the precious metal, Goldman Sachs analysts said.

Silver stands out as an “obvious beneficiary” with global infrastructure stimulus tilting toward renewable energy, and solar in particular, Goldman analyst Mikhail Sprogis said in a note. Solar investment accounts for 18% or silver industrial demand or 10% or silver total demand, he added.

The investment bank initiated a long silver trade earlier this year before closing it out after silver prices surged 50%, briefly reaching its $30/toz target. “Now, with silver at $24/toz and a few potential upward solar surprises in the coming months, we reopen the trade,” Sprogis said.

Those upward solar surprises include both the U.S. and China stepping up plans for more solar installations.

The bank’s equity analysts said, in a base case scenario, global solar installations would increase by 50% between 2019 and 2023 as the trend toward green energy accelerates.

But there are several upsides to what they described as an “ambitious target,” particularly if the U.S. and China pivot toward solar.

“While an acceleration in the trend of solar installations is clearly bullish, demand for silver as a safe-haven metal and to diversify …

To read this article in Barron’s in its entirety, click here.

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Although the information in this commentary has been obtained from sources believed to be reliable, The Gold IRA Company does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. The Gold IRA Company will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.