Silver 1 OZ 999 NY (XAG=X) increased demand for solar panels causes silver prices to spike
Researchers from Kent Business School published a paper this week in the journal Environmental Science and Pollution Research where they state that increased demand for solar panels causes silver prices to spike.
The researchers say that if silver prices go way too high, other materials such as copper and aluminum may start to be used in the development of solar panels.
After analyzing a series of datasets from the London Bullion Market, installed solar energy capacity and solar gross electricity production between 1990 and 2016, the academics noticed that silver prices have risen at the same time there has been a spike in demand for solar panels. Examples of such situations are the years following the 2008 global recession when silver price rose to $18.99/ounce, and shortly after 2011, when there was worldwide concern oil prices were becoming too high and silver prices climbed to $48.03/ounce.
In a university press release, researchers Iraklis Apergis and Nicholas Apergis said that the overall manufacturing and commercialization of solar panels could turn quite expensive if silver prices continue to rise. “This could require intervention from governments such as with energy credits or sales tax waivers to make them more cost-effective to encourage a transition to more renewable energy resources.”
Given that it has the highest electrical and thermal conductivity of all metals, commercial solar panels incorporate about 20g of silver per unit. According to the experts at Kent, this means that the metal is responsible for around 6.1% of the total cost of building each panel.
In the past year, the price of silver has fluctuated between highs of $17.29/ounce and lows of 14.07/ounce. The precious metal currently sits at $15.04/ounce.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 15.26.
The projected upper bound is: 15.40.
The projected lower bound is: 14.62.
The projected closing price is: 15.01.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 29 white candles and 19 black candles for a net of 10 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 57.3390. This is not an overbought or oversold reading. The last signal was a buy 15 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.38. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 56 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -26. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.090 at 15.020. Volume was 8,900% above average (trending) and Bollinger Bands were 46% narrower than normal.
Open High Low Close Volume___
15.008 15.078 14.960 15.020 10,944
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.02 15.35 14.97
Volatility: 11 16 19
Volume: 1,094 219 55
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
PREC.M.XAG= gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
PREC.M.XAG= is currently 0.3% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 36 periods.
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