Solar Energy is Driving China's Insatiable Demand for Silver, 800 M oz!
GSF Corporation to increase production to supply China's ever increasing demand for silver
Beijing, China, June 24, 2015 (Newswire.com) - Here are some stunning statistics regarding the amount of silver required by China to meet its 5-yr plan to install 100 gigawatts of solar producing electricity (by 2020). It takes 236 metric tonnes of silver per gigawatt of solar energy. This translates into 8.3 million ounces per gigawatt of solar energy output. If China installs 100 gigawatts in the next 5 years, this will require 26,300 metric tonnes, which is731.6 million ounces of silver. On an annual basis, China’s solar industry alone will require more than the entire amount of silver produced annually by Chinese mines. With those sort of figures China is going to need all the silver it can lay its hands on. Chinese Mining companies like GSFG Corporation will have their hands full keeping up with this growing demand and are expected to increase production by around 30% by the end of 2015. Chances are China will have to import any shortfall if production within can’t be ramped up in time.
Aaron Walker GSF’s Executive Vice President, Mining & Exploration says these amazing statistics regarding the amount of silver required by China to meet its 5-yr plan to install 100 gigawatts of solar (by 2020) means production in China will have to grow substantially if China alone is to meet demands. In China, 1 gigawatt will power about 3 million homes (vs. about 700,000 homes in the U.S. – the U.S. is an energy hog). The plan calls for converting 300 million homes to solar by 2020.
In the context of what is believed to be a massive short-squeeze developing in the global supply of silver, it is likely that China’s push to solarize its middle class could have an extraordinary effect on the price of silver.