Hey Subscriber,

We have spent the last few weeks focusing on the core minerals and metals that are the strategic and irreplaceable ingredients that are rapidly growing in demand because of the parabolic growth in sales of battery electric vehicles (BEVs) and silicone solar panels. 

We started with graphite and Lomiko Metals. LMRMF is of course an Ultra Growth microcap miner that we are giving a few years to 3X-5X our money or more. Its' still a great buy under .14. Lomiko is right on target and for their next big move up that comes in early Fall with the completion of the third-party economic assessment of their Quebec located graphite reserves (North America located graphite is a critical necessity for making 21st-century lithium-oxide batteries so were are not beholden to the Chinese who today control 90% of battery-grade graphite reserves and production.)

But another metal for which an EV or solar panel cannot be manufactured is silver...and with the SLVO ETF ( a sister ETF to our friend USOI) we are going to get about a 32% annualized monthly dividend from the same strategy as USOI. Credit Suisse the ETF sponsor is selling monthly call options 6% ish out of the money and retaining the premium to pay out as a monthly dividend.

We are bullish on silver prices to begin with ahead to the $4-5 trillion being spent in North America, Europe, China, Japan to rapidly build the green-sustainable world power grid by 2030 and decarbonized energy mandates in 2030/35/40 in those advanced economies.

Look at silver consumption in BEVs from the Silver Institute who today released “Silver’s Growing Role in the Automotive Industry.” produced on its behalf by Metals Focus, a leading independent precious metals consultancy. Key takeaways from the report include:
1) Silver’s widespread use in automobiles reflects its superior electrical properties, as well as its excellent oxide resistance and durability under harsh operating environments;
2) Silver is used extensively in-vehicle electrical control units that manage a wide range of functions in the engine and main cabin;
These functions include, among others, infotainment systems, navigation systems, electric power steering, and vital safety features, such as airbag deployment systems, automatic braking, security and driver alertness systems;
3) Average vehicle silver loadings in hybrid vehicles is around 18-34g per light vehicle, while battery electric vehicles (BEVs) are believed to consume in the range of up to 50g of silver per vehicle. The move to autonomous driving should lead to a dramatic escalation of vehicle complexity, requiring even more silver consumption.
4) Silver automotive demand this year is projected to be 61 million ounces and 250 million ounces by 2025.
5) Ancillary services that require silver are also increasing, including charging stations and charging points for electric vehicles. Here is the full report . . .

But then there are solar panels.

Solar Panel Demand Causing Increase in Silver Prices

If you’re wondering why silver is so important in making solar panels (or EVs), it’s because silver is a metal with incredibly low electrical resistance. Other closely related metals cannot sufficiently match silver's conductivity within these panels.

Key point: Silver is so crucial that it can equate up to 6 percent of the total cost of building each unit of the panel.

The average panel of approximately 2 square meters can use up to 20 grams of silver. There’s a silver paste in the solar photovoltaic (PV) cells that collects the electrons generated when the sunlight hits the panel. Because of silver’s high conductivity, it maximally converts sunlight into electricity.

President Biden wants to install 500 million solar panels in America over the next five years. Goldman estimates solar installation will jump 50% from 2019 to 2023. Installations are also expected to increase overseas, especially in China. Citigroup analysts are even more bullish, with a $40 price target on silver over the next 12 months, driven by investor desire for safety as well as industrial demand once the recovery picks up. They see a return of the 2010-11 bull market in silver as demand rises 6% in China, from both industrial buyers and retail investors.

The great part of SLVO strategy is that silver prices grind higher but historically not 6% per month. This means while silver prices grind higher as BEV and solar projects ramp up, we will average 16-22 cents in MONTHLY dividends.

The next ex-dividend date is 4.20 at 19 Cents. Forecasting out from the first four months of dividends, the average monthly yields are 28.44% low end and 34.27% high end and should average 32% ish.

Action to Take: BUY UNDER $6.50 with $7.25 target 2022 or near 40% total return

We will also a 2022 call option on the underlying ETF SLV on a down day for the SLV to capture more upside from what we expect to be a slow grind up in silver prices that does NOT require the Redditt Yoloers to attack short sellers of silver (these are hedges by silver producers to hedge their commodity price exposure).

32% + 10-20% upside in silver? Sure beats working!