A report by the Silver Institute projects that the automotive industry will absorb nearly 90 million ounces of silver annually by 2025. That would rival demand for silver in the photovoltaic industry and potentially make it the largest industrial application for silver.
Here’s another sign that the air is starting to come out of the subprime automobile bubble.
The default rate on subprime auto loans has reached levels higher than we saw during the financial crisis. As a result, lenders are shutting off the easy money spigot. That’s bad news for the auto industry.