Nick’s Note: Regular readers know that we like the solar industry. In October 2017, we told you solar was the fastest-growing energy source in the United States. One way to play this exciting and growing trend is to buy the commodities needed to make solar panels.
Few know commodities better than our friends over at Casey Research. That’s why today we turn to E.B. Tucker, editor of Strategic Investor. E.B was a founding partner and managing director of an investment firm focused on gold and silver equities. He knows the gold and silver business inside-out, having visited mines in many countries…
By E.B. Tucker, editor, Strategic Investor
Clean energy is on the rise. From hydroelectric dams to wind power, people are demanding cleaner sources of energy.
However, one sector is set to surge in the coming years as costs continue to decline.
That sector is solar power. And as I’ll show you in the report, silver is about to get a huge boost as well.
Solar power is not new. Its breakthrough discovery came way back in the late 1800s. Commercial use began in the 1950s, with the advent of the silicon solar cell for use in small electronic devices.
Back then, the cost of a one-watt solar cell was around $300. As with any technology, innovation can drive costs much lower. Today, a photovoltaic (PV) solar cell goes for about $1 per watt, according to the National Renewable Energy Laboratory (NREL). And costs are still heading lower.
This opens the door for an explosion in large-scale solar power generation. And one key component of solar panels stands to benefit: silver.
Today, one solar panel contains about 20 grams of silver. While that doesn’t sound like much, consider that generating the equivalent of 1 megawatt (MW) of power would take roughly 4,000 solar panels.
The Tengger Desert Solar Park in China is currently the world’s largest solar array. Its capacity is 1,547 MW and covers nearly 450 square miles.
That’s millions of solar panels. It’s also why it’s nicknamed the “Great Wall of Solar.”
Tengger Desert Solar Park
And demand is only going to increase from here. According to research firm GlobalData, worldwide demand for PV capacity is set to increase almost 3x by 2025.
It’s that kind of growth that could send the price of silver soaring.
How to Profit From the Solar Surge
Silver is an industrial metal, used in everything from plastic to batteries, and even deodorant. With the advent of PV solar panels, silver has found another use that we think investors have yet to recognize.
Buying physical silver can be lucrative. After spending years bouncing around between $12 and $18 per ounce, silver looks primed for a takeoff.
With demand for silver on the rise, physical silver could triple. That’s a great return…
…but silver mining stocks will do better.
Silver mining companies have huge costs for digging silver from the ground. That’s why when the price of silver spends years doing nothing, miners aren’t the best investment.
When silver moves higher, it usually moves very quickly. To give you some idea, silver usually runs three times as fast as gold. If gold moves up 10%, silver could move up 30%. This isn’t a hard and fast rule… but track several big runs in silver, and you’ll see that pattern play out.
Silver mining companies capture that price surge right away.
As this trend continues, the top silver miners stand to benefit.
Editor, Strategic Investor
P.S. The biggest power shift in the last 100 years is happening now. And it’s creating a tipping point in the next generation of energy metals.
You see, a new type of energy is taking over. It will power our businesses, homes, and automobiles. And it will create a major commodities bull market centering around a few select metals.
If you know where to put your money ahead of time, you could see once-in-a-lifetime gains. Click here to learn more…
Nick’s Note: When it comes to gauging volatility (“fear”) in the markets, few are better than Palm Beach Income editor William Mikula. William uses fear to his advantage. When investors start to sell in a panic, he’s there to pick up elite stocks at big discounts.
So far this year, he’s 20 for 20 on closed trades, and has banked average annualized returns of 25.8%. Meanwhile, the S&P 500 is up 2.4%, annualized. In today’s Chart Watch, William explains how you should play the current spell of low volatility…
The Calm Before the Storm
Wall Street likes to call the CBOE Volatility Index (VIX) the market’s “fear gauge.” Without getting too complicated, it indicates fear and complacency in the market.
An index reading of 20 is my line in the sand. Anything above 20 implies fear. And a reading below 20 signals calm.
Last Friday, the VIX closed at 12.64. Despite the fear and angst you see on the nightly news, all is calm when it comes to the market’s fear gauge.
So how would I play this low-VIX market?
I’d tighten my stop losses and build my cash hoard. I’d also lock in gains on any speculative positions that have hit my profit targets.
When the VIX spikes—and it will—that means the market is selling off. Speculative names will be hit hard. But it will be a great time to use that cash to buy discounted elite stocks that get caught in the sell-off.
When that happens, I’ll be in touch with an updated chart… and the moves you should make to capitalize on the fear.
Did you hear this big announcement from PBRG guru Teeka Tiwari and media personality Glenn Beck? If not, click here…