Tuesday April 21, 2015, 10:47am PDT
iNVEZZ.com reported that Bank of America Merrill Lynch Global Research believes the silver price has made it “through the worst.” However, the entity doesn’t expect it to break out of its current price range in the near future.
A catalyst for silver demand in the future will be China’s energy sector, which may lend some price support.
As quoted in the market news:
Silver is key to building photovoltaic generators, which produce usable solar energy, and China plans a major expansion of its use of solar power into the future, the advisory argued. In a rough estimation, 1 gigawatt of solar power requires about 3 million ounces of silver and China is considering building enough generators to produce 100 gigawatts of solar power by 2020. This equates to a total forecast requirement of some 300 million ounces for China’s energy sector alone – more than a third of the annual global production of silver.
While installations are expected to fall short of the 14-gigawatt target this year, Bank of America Merrill Lynch said, pragmatic steps taken in the second half of last year and the People’s Bank of China’s rate cut in November ‘should help bridge the disconnect between ambitious top-level targets and evolving financing markets and policy measures.’