Silver Demand for Flexible and Printed Electronics Expected to Boom
The price of silver is up over 70% year on year. Investment demand was at record levels during the pandemic, but industrial outtake plunged. As economies have opened up, industrial demand for silver has rebounded, helping to support rising prices. And there are reasons for continued bullishness on silver in the long term.
According to a recent report from the Silver Institute, silver demand for printed and flexible electronics is forecast to increase 54% over the next 10 years.
Demand for silver in this rapidly developing sector is forecast to come in at 48 million ounces this year. By 2030, the demand is expected to surge to 615 million ounces.
Printed and flexible electronics serve a vital role in the evolution of electronic technologies. They are used in a wide range of products, including sensors for temperature, pressure, motion, lighting, moisture/relative humidity, radar, heart rate, and carbon monoxide. Other applications include their use in internet-connected devices, medical and wearable electronics, displays for appliances, mobile phones, computers and tablets, medical devices, automotive, and consumer electronics.
Manufacturers are increasingly using this technology because it is flexible, customizable, innovative and portable. Printed and flexible electronics are also cost-effective. These components can be processed on a roll-to-roll or large area substrate, and their cost and manufacturability make these technologies extremely attractive.
Printed and flexible electronics are being used in an increasing number of applications. For instance, they are ideal for making labels and packaging for retail goods, and warehouse logistical operations. They are also vital to smart buildings that rely on wholly integrated systems that share essential information using internet-connected sensors to control HVAC, lighting, security, energy, access, and security monitoring and other applications.
Silver is the most conductive metal in the world and is a key component in virtually all electronic applications, including consumer electronics, automotive electronics, microelectronics systems, LED (light-emitting diode) and Organic LED displays, photovoltaics, semiconductors, and power distribution components. As the world drives towards greater connectivity, which will require higher amounts of electrification, silver will continue to be vital to the expansion of flexible and printed electronics technologies.
Along with increased silver demand for printed and flexible electronics, analysts expect the solar energy and automotive sectors to demand more silver in the coming years.
But at its core, silver is a monetary metal. It tends to track with gold over time. Looking at the big picture, the biggest driver for precious metals continues to be Federal Reserve monetary policy. In order to turn bearish on gold and silver, you have to believe the Federal Reserve is actually going to tighten monetary policy and the dollar is going to remain strong. But given the massive dose of monetary heroin the central bank has injected into the economy, the Fed really has no way out. There is no exit strategy from this extreme monetary policy. That bodes well for both silver and gold in the long term.
LEARN MORE
The Powerful Case for Silver report covers the fundamentals of the silver market and explains why investors should be bullish on silver in the long term. You can download the report free.
The report covers the following topics in detail.
- Supply and demand dynamics
- Growing industrial demand for silver
- The Federal Reserve’s monetary debasement
- Silver’s role as money
- What the silver-gold ratio is telling us
- How to buy silver and the products to avoid
This report makes the strong investment case for silver — a metal with the monetary benefits of gold paired with the industrial upside of other commodity metals.
