Phil Carr
The Gold & Silver Club
This week, Silver prices rebounded from March lows, after the U.S Federal Reserve confirmed its commitment to zero rates and QE asset purchases, alongside President Biden's massive $2.3 trillion Green Energy and Infrastructure spending plan.
Similar to the $1.9 trillion stimulus plan signed only a few weeks ago – Biden’s new package will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network.
One of the highlights of Biden’s proposal is a $174 billion investment into Electric Vehicles and billions more for renewable energy initiatives – with the goal to build a national network of 500,000 electrical vehicle charging stations by 2030.
Biden’s massive Green Energy and Infrastructure spending plan, ultimately means that the U.S is going to need more commodities.
Specifically industrial metals including: Copper, Palladium, Platinum, Lithium, Nickel and rare earth metals for batteries and 5G technology. Above all, it needs Silver – and lots of it.
Silver is a key component in President Biden’s ambitious multi-trillion dollar plan – as it will go into the electric vehicles, as well as the charging stations to power them and in the cables connecting new wind turbines and solar farms to the grid.
However, supply is limited – which is yet another indication that we could be on verge of a new supercycle in commodities as demand outstrips supply this year.
As the U.S and other governments around the world pursue more aggressive Green Energy and Infrastructure policies to reach net-zero carbon emissions by 2050 or sooner – this alone will continue to be a major driver of Silver demand for years to come.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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