With extensively growing industries of solar panels and EV vehicles requiring more demand for silver, the price of metal will surge to ₹1 Lakh within the next year.
In this blog, we’ll discuss the impact of rising demand for solar panels and EV vehicles over silver prices and how you can capitalize on them. Let’s begin.
How Does Increasing Demand for Solar Panels and EV Vehicles Influence Silver Prices?
Silver is used in the production of consumer durable goods like automotive electronics and semiconductors.
For instance, silver is essential in manufacturing the photovoltaic cells of solar panels, which plays a vital role in renewable energy generation.
Similarly, silver is an excellent conductor, which makes it a befitting choice for the advancement of electric vehicles (EV), offering features like automatic braking, power steering, and navigation systems.
Additionally, technology is evolving rapidly, bringing new discoveries and advancements in renewable energy and EV batteries, substantially impacting the demand for silver in the long term.
Silver has an indispensable role in both applications because of its exceptional conductivity and antimicrobial properties.
In the field of renewable energy, silver is used as a vital component in solar cells (photovoltaic cells). With the advancements in solar energy or photovoltaic cells, the demand or consumption for silver will further increase.
Therefore, emerging industrial applications are driving significant demand for silver. In India, silver prices may trade within a range of ₹75,000 to ₹92,000 in August this year.
The increasing demand and prices for silver have brought trading opportunities to the financial market. As of July 5, 2024, silver prices on the Multi Commodity Exchange (MCX) have hit a 3-week high of ₹92,550 per kg.
How Can You Capitalize the Increasing Silver Prices?
Investors have numerous options to invest in silver, including physical form, bullion, Silver ETF, Silver Futures and Options, and Jewellery.
One of the most used ways to invest in silver is to either purchase physical coins and bars or their digital form or derivatives. The digital form of silver contains the same value and gives you the flexibility to use it on digital transactions.
Additionally, you can even invest in the shares of silver mining companies to earn long-term profits. Alternatively, You can also buy silver futures and options contracts. You can even opt to trade in the derivative market based on silver future prices and make profits.
It will allow you to generate profits using the volatility of the market. For options, you can use the silver option chain to understand the current scenarios in the derivative market and make more informed trading decisions.
In recent times, trading has been one of the best ways to generate an extensive amount of profits today based on increasing silver prices in the future.
Conclusion
The demand for silver is on the boom due to the growing renewable energy and EV vehicles industry. As per the basic demand and supply rule, with the increasing demand for silver, its prices will also rise. This surge in silver prices encompasses a number of opportunities for potential traders in the future and options market.