When asked about the most important drivers for silver right now, he pointed to the solar industry, noting that two to three years ago it was consuming 100 million ounces of silver; that amount rose to 200 million ounces last year.
This year, the Silver Institute is projecting a further 40 million ounces of solar demand, but Lin thinks the sector may end up requiring an extra 100 million ounces, bringing its total usage to 300 million ounces for 2024.
‘From all the data I get, it’s 100 million … so from 200 million to 300 million,’ he said. A new report out of Germany has an even higher projection, forecasting that the solar market could consume 400 million ounces of silver this year.
‘My point is that once investors see the huge deficit, they truly see the huge deficit in silver, silver will go to US$50 just like that — just in a heartbeat,’ Lin said, adding that so far most market participants haven’t gotten there.
When asked how he’s getting exposure to silver, Lin said he’s heavily exposed in the future market. However, he doesn’t recommend that path for everyone as the leverage involved can be highly risky.
He’s also looking at silver miners, which he believes are cheap. ‘Silver miners are going to have a huge Q2 — gold miners too, but silver in particular,’ he said, noting that the average silver price will be much higher than it was in Q1.
‘If they are not making money at US$20 (silver), at US$30 suddenly there’s a huge profit,’ he said.
Watch the interview above for more from Lin on his outlook for silver and ways to invest.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.