Why silver prices could test $50 within a year

Why silver prices could test $50 within a year

by | May 30, 2024 | Commodities, Economy, Energy, Global Warming

(SIY00) (SIN24) (SLV) (SIL) (PAAS) (WPM) (SSRM) (AG) (MAG) 

by Jim Roemer – Meteorologist – Commodity Trading Advisor – Principal, Best Weather Inc. & Climate Predict – Publisher, Weather Wealth Newsletter 

  •  Memorial Day Weekend Report:  May 24-27, 2024  

Silver plays a crucial role in the global green economy, particularly in renewable energy technologies and sustainable practices. With more global weather extremes and record-warm oceans, environmental technologies that utilize silver will only grow in the years ahead.

We have been slapped with unprecedented weather events: Historic snowfalls in California this winter and the rapid melting of Arctic ice. In addition, we have witnessed floods and landslides from Houston to southern Brazil.

The need for new technologies to combat climate change is being accelerated by only a few of the dozens of weather extremes.

Source: chart by KITCO and comments by Best Weather, Inc.


Just take a look at how record-breaking global ocean temperatures brought on climate change (to a greater extent than by El Niño) is opening the door for more silver-based technologies in the environmental sector.

We are seeing the silver market soar and the inevitable scenario is on the horizon for a $50 per ounce price tag.

Solar Energy: Silver is an essential component in photovoltaic (PV) cells built into solar panels. Silver paste is applied to silicon wafers that conduct the electricity generated from sunlight. In 2020, over 100 million ounces of silver were consumed in PV cells for solar energy. As the world transitions to renewable energy sources, demand for silver in solar panels is expected to grow significantly.

  • E l e c t r i c    V e h i c l e s: Silver is widely used in automotive electrical systems due to its excellent conductivity. Nearly all electrical connections in modern automobiles, including those in electric and hybrid vehicles, are outfitted with silver-coated contacts and membrane switches. The rise of electric vehicles will drive increased silver demand.
  • W a t e r    P u r i f i c a t i o n: Silver is used in water purification systems, both residential and commercial, due to its antibacterial properties. As the green economy emphasizes sustainable water management, the use of silver-based water purifiers is likely to increase.
  • R e n e w a b l e    E n e r g y    S t o r a g e: Silver is a key component in batteries used for storing energy from renewable sources like solar and wind. The growth of renewable energy will necessitate more efficient energy storage solutions, boosting silver demand.
  • A n t i b a c t e r i a l    A p p l i c a t i o n s: Silver’s antimicrobial properties make it valuable in various green applications, such as textiles, bandages, and medical equipment, reducing the need for harmful chemicals.

When it comes to weather forecasting and my commodity analysis, I don’t write about the technology in the business of artificial intelligence. Nevertheless, silver has several important applications related to AI. 

Silver is an excellent conductor of electricity, making it essential for electronic components in AI systems like computer chips, circuit boards, and interconnects. Its high electrical conductivity allows for efficient data transfer and processing. It is used in memristor devices, which can mimic the behavior of biological neurons and synapses. Memristors made with silver nano-wires can form artificial neural networks for neuromorphic computing, a brain-inspired approach to AI. Silver nanoparticles and nano-wires are being researched for use in random access memory (RAM) and non-volatile memory devices that could enable faster and more energy-efficient AI hardware. 

As I mentioned above, silver is a crucial material in solar panels due to its superior electrical conductivity. Because AI systems require immense computing power and energy, solar panels with silver play a role in providing renewable energy for AI data centers.
 

So… in summary, silver’s unique properties make it an indispensable material in the global green economy, and AI technology,  particularly in renewable energy expansion, sustainable water management, and eco-friendly applications that prioritize resource efficiency and environmental stewardship.


Join ETF investors, commodity traders, and farmers who want a huge advantage in understanding how the global climate is affecting everything from coffee and soybean futures to cocoa and even silver. Receive a 2-week free trial period to WeatherWealth. https://www.bestweatherinc.com/new-membership-options/

(The only all-global weather and commodity newsletter with trading ideas)

Thanks for your interest in commodity weather!

Jim Roemer, Scott Mathews, and the Weather Wealth Team.

  • Please feel free to learn about Jim Roemer, our track record, and how we use weather to help traders, hedgers, and investors. If you have any questions, please don’t hesitate to drop me a line  – Scott Mathews, Editor

Mr. Roemer owns Best Weather Inc., offering weather-related blogs for commodity traders and farmers. He also is a co-founder of Climate Predict, a detailed long-range global weather forecast tool. As one of the first meteorologists to become an NFA registered Commodity Trading Advisor, he has worked with major hedge funds, Midwest farmers, and individual traders for over 35 years. With a special emphasis on interpreting market psychology, coupled with his short and long-term trend forecasting in grains, softs, and the energy markets, he established a unique standing among advisors in the commodity risk management industry.

Trading futures and options involve a significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results. There is no warranty or representation that accounts following any trading program will be profitable.

“You can’t change the weather, but you can profit from it”

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Weather refuses to rescue natural gas and grain traders from the hungry bears

Weather refuses to rescue natural gas and grain traders from the hungry bears

by | Feb 15, 2024 | Energy, Global Warming, natural gas, Weather

February 15, 2024

A major stratospheric warming event can sometimes force very cold weather upon key natural gas heating demand areas. This is what normally happens for late February and March when the AO index goes negative. However, I have “faded” this solution to our WeatherWealth clients touting an overall bearish view in natural gas, most of this winter. 

Source:WeatherWealth newsletter at www.bestweatherinc.com
 

The record warm global oceans are contributing to latent heat release (evaporation and more water vapor in the Atmosphere). This is resulting in:

  • Improved rain chances for Argentina’s key soybean growing areas again deeper into February
  • Northern Brazil rainfall to rescue a coffee crop, beaten down by previous heat and dryness in December-January
  • A warm global outlook for natural gas regions with weakened LNG exports

In addition,  El Niño has actually strengthened a bit again. The SOI index has gone the most negative of the winter due to the MJO phase, You can see here my warm forecast for the month of March from last week:

Source:WeatherWealth newsletter at www.bestweatherinc.com


So… how do you trade natural gas, grains and other markets? After all, the CFTC Commitments of Traders report shows a large net short speculative position (managed money) in many commodities that may be bound for profit-taking. That is what we do at WeatherWealth (short and long range weather forecasts, but also specific trading strategies one cannot get from any meteorologist. For example, we told natural gas clients recently about the price comparison to the warm 2020 winter.

(chart) Natural gas prices are mimicking the warm 2020 winter. Prices are even lower than $1.60 in part due to a lack of LNG exports and warm weather in Europe as well as the US

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(VIDEO): Winter weather forecasting techniques and the collapse in natural gas prices

(VIDEO): Winter weather forecasting techniques and the collapse in natural gas prices

by | Dec 7, 2023 | Energy, natural gas, Skiing, Weather

Click on the video above to see how various climatic factors will affect winter weather and the natural gas market.

Discounts are available for small traders and farmers. Find out, how one trade alone, such as being short natural gas in early November pays for my newsletter for two years.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS AND THERE IS ALWAYS A RISK OF LOSS IN COMMODITY TRADING.

What is the NAO index and how can it influence winter weather for the energy markets

What is the NAO index and how can it influence winter weather for the energy markets

by | Nov 27, 2023 | Commodities, Energy, natural gas, winter

Click on the video above

After a massive sell-off in natural gas prices the last few weeks on a warm late fall and huge production, the NAO turning negative may offer some colder, snowier risks for the eastern third of the U.S. But, is it enough to warrant a major rally in natural gas futures?

Overall, however, our WeatherWealth newsletter has been bearish natural gas for more than a month, helping clients to potentially capitalize on various options and future strategies.

What is the MJO? How does it work in conjunction with El Niño to affect commodity markets?

What is the MJO? How does it work in conjunction with El Niño to affect commodity markets?

by | Nov 14, 2023 | Commodities, Energy, Investing, Markets, Soybeans

In this video (click above), I discuss the MJO index and how we use it as a weather forecasting tool in conjunction with El Niño: 

  • Where the MJO will move to, and if it will influence the outcome of northern Brazil’s soybean drought; 
  • the potential for a colder outlook in U.S. natural gas heating demand areas; and 
  • a continuation of disease issues for West African cocoa.

While Equatorial Pacific Ocean temperatures are very warm suggesting strong El Niño conditions, other variables do not justify El Niño being more than weak-to-moderate.

For example, the MEI index (above) is a better representation of how strong El Niño is. This takes into account global atmospheric angular momentum GLAAM), and the SOI index and is also influenced by the progression and strength of the MJO.  

Feel free to download a complimentary issue of one of my full WeatherWealth reports with recent trade ideas here and how we forecast longer-range weather for farmers and traders on six continents.

Solar Cycle 25 & South American Commodity Weather

Solar Cycle 25 & South American Commodity Weather

by | Nov 3, 2023 | Commodities, Energy, Environment, Global Warming

My video talks about what is going on in South America concerning some new weather problems for soybeans, sugar cane, and possibly coffee (though recent rains have been great news for the early coffee bloom in Brazil).

I also show some interesting images of historic artifacts being exposed by lowering water levels and record drought in the Brazil Amazon, and a look at solar cycle 25 and the active sun. 

Sunspot cycles occur every 11 years. Without going into too much detail, the number of sunspots is approaching 2014 levels. In layman’s terms, this means the next sunspot cycle peak should not occur until at least 2024 or 2025.

In my view, and of many NOAA and MIT scientists: “solar cycles do not have the effect they once had on global weather due to the warming planet and stratosphere.”

Currently, it is El Niño and the Amazon rainforest drought and deforestation emergency that will determine many agricultural commodity price moves based on South American weather over the next few months.

Sign up for my El Niño report and some occasional free weather and commodity updates below.