Biden’s Rescue Plan and next month his Recovery Plan will drive up demand for silver. In addition to this, Biden plans to push for a national electric vehicle initiative that includes a hybrid vehicle. This will likely cause a spike in demand for precious metals such as platinum, palladium, and silver as these are used in catalytic converters (hybrid) and batteries (hybrid and electric). Silver is unique in its chemical makeup, which is why it is what directly or indirectly makes green technologies possible. Silver is known to have the highest known electrical and thermal conductivity of all the metals, which is why it is used in the most electrical generation today. Not only is silver used in electric vehicles, but it is also built into solar panels, a renewable energy source with no carbon emissions. An average EV requires 25-50 grams of silver per vehicle while hybrids use 18-35 grams per vehicle. The more common internal combustion engine uses 15-28 grams of silver per vehicle alone. Putting this all together with the new incentive for electric and hybrid vehicles, the Silver Institute estimates that by 2025 the automotive sector will use at least 90 million ounces of silver annually.
With electric vehicles comes the charging stations to fuel their engines. These charging stations themselves require silver, contributing to the projected demand. Currently, there are 29,000 public charging stations and Biden plans to increase this by 1,624%. Plans, likely to be approved easily since President Biden has announced his Treasury Secretary as the prior Fed-chair Janet Yellen, along with a Democrat-controlled House and Senate. With additional cooperation and input from Democratic-Socialist Bernie Sanders, Biden’s economic plan will be influenced greatly by the Green New Deal and other progressive policies. All of these plans will require more spending, push the country further and further into debt, and will cost taxpayers at least $1.9 trillion.
So whether we celebrate the inauguration of the new president or not, we can celebrate it as a win for the most versatile metal. Silver is used in everything from electronics, chemical production, a hedge against inflation, jewelry, photography, to clean food and water, and in everyday objects like mirrors and glass. For example, most windows are coated with a layer of silver to reflect sunlight, silver is used in more objects than we realize. The Silver Institute predicts that in the next four years, silver will become the second-largest source of industrial use.
Silver has long been a great asset to invest in due to its high-profit margin. Much more affordable than other precious metals (for now), yet it’s value increases exponentially year by year. Allegiance Gold boasts some of the most competitive prices along with an extensive selection of silver products to meet your needs. Investors can choose to purchase physical silver coins and bullions or transfer a portion of a retirement account into a precious metals IRA. Diversifying is the number one rule in investing and precious metals have been used as a form of insurance for savvy investors in a volatile market. However, it is important to diversify within precious metals as well. Three metals approved for a self-directed IRA include gold, silver, and palladium. To speak to an experienced Allegiance Gold representative to discuss how precious metals can be incorporated into your investment portfolio call 844-790-9191 today.