(Kitco News) - Silver demand is set to explode, said Chen Lin, founder of Lin Asset Management.
Last month Lin spoke to Kitco at the Vancouver Resource Investment Conference 2023.
Lin wrote in his December outlook that solar photovoltaics productions will jump over the next decade. According to a recent International Energy Agency report he cites, solar will generate more power than any other source—including coal, natural gas and hydro power—by 2027, only four years from now. Silver is a key metal in the manufacture of solar panels.
Lin isn't worried about substitution, such as copper used in place of silver, since silver has unique properties that make it the preferred choice of solar manufacturers. Mainly, silver doesn't corrode like copper, an important factor when the metal is exposed to the elements.
"There are other materials, but you sacrifice efficiency," added Lin.
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Lin said that the trend in silver parallels developments within the lithium sector, which is seeing high demand due to electric vehicle sales.
Lin added that new developments in the solar sector will require even more silver.
"The new technology in solar panels use a lot more silver, because the panels have multiple layers," says Lin. "Each layer you need a wire. There's just a lot more silver in future solar panels."
Coverage of Vancouver Resource Investors Conference 2023 sponsored by First Mining Gold.
