Thursday, July 19, 2012

Japan’s Solar Tariff Bullish for Silver


New York, NY (PRWEB) July 19, 2012 In a recent Penny Stock Detectives article, editor Danny Esposito points out that Japan recently set a premium price for solar energy at three times the rate of conventional power. Esposito notes that this will increase demand for solar energy in Japan, which will result in an equal increase in demand for silver.

“After the Fukushima disaster, Japan has been looking to replace much of its nuclear energy with other green energy alternatives,” states Esposito. “This announcement supports solar energy as a viable energy alternative that other countries should be seriously considering.”

Bloomberg estimates that this generous tariff will generate $9.6 billion in new solar investments in Japan alone. Since the tariff is almost twice what Germany offers, it is possible that Japan will jump to second in the world when it comes to solar investments, only behind China, comments Esposito.

Solar power equipment and solar panels, which many homes and businesses install on their roofs, are constructed using a significant amount of silver, the Penny Stock Detectives editor observes.

“This announcement by Japan means demand for silver within Japan is about to rise significantly in the Japanese marketplace, as companies build out solar infrastructure and manufacture solar panels, taking advantage of the tariff,” Esposito explains.

How significantly can demand for silver shift in Japan following this announcement? Esposito notes that just eight years ago, China was mining silver bullion and exporting it worldwide. At that time, China exported roughly 200 million ounces per year of the precious metal, he reports.

Today, China has stopped exporting silver bullion and is now a net importer of the precious metal to the tune of roughly 200 million ounces annually, observes Esposito. In just eight short years, China’s demand for silver bullion has increased by 400 million ounces, which represents roughly 40% of the world’s total production of the precious metal per year, he reports.

“This dramatic shift in demand for silver is partly reflective of the fact that China is the largest producer of solar panels in the world. China has also instituted policy to use solar energy throughout the country, which further increases the demand for the precious metal,” notes Esposito.

“China is very cryptic about its uses for silver. Many, including myself, believe the People’s Bank of China is hoarding silver bullion coins as part of its reserves to diversify,” Esposito says. “China believes silver bullion, along with gold bullion, to be a currency and that these precious metals will insulate the country from potential future financial crises.”

In Esposito’s opinion, Japan, with its most recent tariff announcement, is set to increase demand for silver bullion dramatically. If the numbers even come close to China’s radical shift, the increased demand with steady supply means that silver bullion prices have a very strong probability of rising in the near future, concludes Esposito.

To see the full article and to learn more about Penny Stock Detectives, visit http://www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.

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