Silver Surge Makes Headwind for Solar Industry

Source: Bloomberg, Ehren Goossens (6/23/11)

"Soaring silver prices are hampering the solar industry's ability to compete with fossil fuels."

Bloomberg, Ehren Goossens

Soaring silver prices are hampering the solar industry's ability to compete with fossil fuels.

Panel makers consume about 11% of the world's supply of silver, the material in solar cells that conducts electricity. The metal has appreciated 74% to $35.30 a troy ounce on average so far this year from $20.24 last year.

Prices for solar cells have dropped about 27% this year and would be even lower if each panel didn't require about 20 grams of silver, according to Bloomberg New Energy Finance. That's pushing back the date when companies such as Solarworld AG and LDK Solar Co. can deliver solar power at prices that are competitive with traditional energy.

Prices for photovoltaic solar panels were $1.49 a watt in June, compared with about $1.80 in January, New Energy Finance estimates, as manufacturers especially in China raised production and incentives were trimmed in Europe.

"Some companies are implementing measures to reduce silver consumption, but we believe rising silver prices could still act as a headwind," Barclays Capital wrote in a note to clients.

The price of the silver paste that Canadian Solar uses to print circuits on the front of its solar cells more than tripled in the past year, Qu said. That adds about $0.03 to $0.04 a watt, or 2%, to the cost of the panels.

A typical solar cell uses 0.10 grams of silver for each watt of generating capacity. That amounts to about 20 grams in a 200-watt panel, adding $23.52 to the cost of each panel, according to New Energy Finance. The cost for metal in each panel totals about $0.11 a watt, up from $0.05 a year ago, the London-based industry researcher estimates.

Gold Explorer Highlights 2020 Achievements and Outlook
Source: Streetwise Reports (01/29/2021)

Magna Gold Corp.'s CEO Arturo Bonillas issued a letter to shareholders outlining the firm's business and financial accomplishments in 2020 and its strategy and outlook for 2021.

Cabral Gold's channel samples at the JM target provide "further evidence that numerous high-grade veins occur within the Cuiú Cuiú district."

Explorer Completes Phase 2 Metallurgical Work for Palladium-Copper Project
Source: Streetwise Reports (01/28/2021)

Generation Mining intends to wrap up the feasibility study on Marathon this quarter.

Silver Firm Reports Q4/20 Processing, Production Numbers from Mexico Project
Source: Streetwise Reports (01/28/2021)

MAG Silver's joint venture project Juanicipio produced 230,000 ounces of silver during the quarter ended Dec. 31, 2020.

Explorer Reports High-Grade Gold-Silver Intercepts at BC Golden Triangle Property
Source: Streetwise Reports (01/27/2021)

Scottie Resources Corp. advises that the target remains open in most directions.

Golden Arrow Resources Out Exploring Again After COVID-19; Hits High-Grade Gold at Tierra Dorada in Paraguay
Source: The Critical Investor for Streetwise Reports (01/27/2021)

The Critical Investor explains why he believes "investors have an interesting opportunity to invest in a pretty derisked, undervalued and experienced explorer with three chances for success."

Junior Mining Sector 'the Best Value in the Space'
Source: Streetwise Reports (01/27/2021)

The StreetSmart Live! Broadcast on Jan. 26, 2021, focused on metals and why now is a good time for investors to be looking at them and the mining space. John Newell, independent analyst and portfolio manager, and John Feneck, mining sector expert and president of Feneck Consulting, addressed the status of the current metals market. CEOs of the three metals-focused companies comprising the Metallic Group of Companies—Group Ten Metals, Metallic Minerals and Granite Creek Copper—discussed their projects.

Shenanigans Abound: Gold, Silver and Cryptocurrency
Source: Michael Ballanger for Streetwise Reports (01/26/2021)

Sector expert Michael Ballanger explores the generational trends currently shaping investment markets, including the precious metals.

MMT Survey Helps Explorer Identify New Large Target at Ecuador Property
Source: Streetwise Reports (01/26/2021)

Aurania Resources reported that data from an ongoing Mobile MT Survey identified an extensive target at Tsenken at its Lost Cities - Cutucu Project in southeastern Ecuador.