Are Renewables Going to Save the Silver Industry?

renewables silver
Published on: June 10, 2022
Author: Philip Tai

Silver prices have struggled to break past the $22/oz mark in the past few weeks despite stagflation fears and strong industrial demand.  Much discussion has been had regarding the demand that renewable energy applications will have for silver, but what are the indications today that these predictions will play out?

Let’s take a look.

Shell, European Oil and Gas Major, Announces Sale of Renewable Energy to Texas

In a major shift for the European oil company’s business in the U.S. market, Shell said in early June that it would begin selling electricity generated from renewable sources to residents and businesses in Texas. 

The announcement shows a growing difference between the strategies of European and U.S. oil companies as elected leaders and consumers in Europe are demanding that the energy industry do more to combat global warming, while American policy makers and consumers still question if climate change is even happening. Shell, BP and TotalEnergies, all European companies, have taken steps to expand into renewable energy, electric vehicle charging and other fast-growing businesses.  U.S. companies like Exxon Mobil and Chevron mostly keep their focus on oil and gas while investing in greenwashing initiatives such as carbon capture.

Shell said its new power business in Texas would be focused on wind and solar power that is increasingly abundant in the state. It will also incentivize the EV industry by offering free charging at night, when demand for electricity is low, and during weekends.

Silver’s Role in the Renewable Revolution

Silver is a fundamental component in the production of both solar panels and EVs. Silver’s conductivity and corrosion resistance have made it a must-have for conductors and electrodes; nearly every electrical connection in an EV uses silver and, in total, the auto sector uses 55 million ounces of it annually.

As the trends continue to funnel capital into renewable energy projects, it’s also putting silver on the road to long-term growth. Thanks to the private sector moving to bolster public investment in EVs and solar energy, silver will continue to have growing industrial demand.

Investing in Silver?  Learn about Golden Tag Resources Ltd. (TSXV:GOG)

Investors should pay attention to silver exploration companies as their stock prices move not only with silver prices, but with the company’s ability to build value in their mining properties by drilling for and identifying silver resources.  Given the long term demand outlook for silver brought on by the growth of renewable energy, investors should keep an eye on companies like Golden Tag Resources (TSXV:GOG)(OTCQB: GTAGF).

Golden Tag Resources Ltd. is a Toronto based mineral resource exploration company. The Company holds a 100% interest, subject to a 2% NSR, in the San Diego Project, in Durango, Mexico. The San Diego property is among the largest undeveloped silver assets in Mexico and is located within the prolific Velardeña Mining District. Velardeña hosts several mines having produced silver, zinc, lead and gold for over 100 years.

Learn more about GOG’s San Diego project by watching our last interview with them:

Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.

Clean Technology Energy Metals In-Depth Analysis Investment Precious Metals Silver