Investor Alert: Get Paid Every Time a Tesla Charges

A pick-and-shovel EV play...

Posted June 26, 2023

Dear Outsider,

When was the last time you went to the movies?

I recently saw Spider-Man: Across the Spider-Verse. (Spoiler: It ends with a brutal cliffhanger that left the whole place wondering why they didn’t just wrap it up.)

Anyway, I love watching movies on the silver screen.

But have you ever wondered why it’s called the silver screen?

It turns out that in the 1920s (and probably even earlier), projectionists started painting screens with a silver coating to brighten the image and sharpen the contrast. In fact, silver is still used in some 3D projector screens.

It made me wonder what else silver is used in today.

It turns out, silver is used in pretty much everything.

And that’s not an exaggeration.

Here’s a list of products and sectors that currently use silver:

  • Automobiles: Silver is found in electrical contacts, switches, and connectors due to its conductivity and resistance to corrosion. It’s also employed in the production of catalytic converters, which help reduce pollution.
  • Electric vehicles: Silver-coated components improve the overall efficiency and durability of batteries, enhancing an EV’s range, charging capabilities, and longevity. Not to mention, the entire EV charging infrastructure relies on silver, as the precious metal is used in charging connectors, plugs, and cables to ensure efficient and reliable power transfer during the charging process.
  • Solar panels: Silver plays a crucial role in the production of solar panels and photovoltaic cells. It is used as a conductive material in thin-film solar cells and crystalline silicon solar cells. Its helps collect and transport electric current generated by sunlight, making it an essential component in the renewable energy sector.
  • Smartphones: Silver is indispensable in the electronics and technology sectors. Every iPhone has silver in it. Just like with automobiles, it’s used in the production of printed circuit boards, connectors, switches, and other electronic components.
  • Water purification: Silver ions can be used to inhibit bacterial growth and kill harmful microorganisms in water filters and treatment systems, ensuring safer drinking water.
  • Medicine: Again, silver's antimicrobial properties have long been recognized, making it valuable in medical applications. It's used in wound dressings, bandages, and medical devices to prevent infections. Silver nanoparticles are found in antibacterial coatings for catheters and surgical instruments. Additionally, silver compounds are utilized in certain medications and treatments.

And that’s not even an exhaustive list. However, those sectors combined globally represent over $1 trillion in market cap — and it’s all made possible because of silver.

It’s almost as if silver is propping up the global economy...

So you may be wondering why silver is so “cheap” today and if it’s a good time to buy it.

Well, the reasons to buy precious metals remain the same. You’ve got increased macroeconomic and geopolitical risks that could negatively impact stocks. Precious metals offer you a hedge against rampant inflation because they protect your purchasing power.

Not to mention, JPMorgan owns half the silver bullion on the COMEX. And even Warren Buffett, who’s on record saying gold is a terrible investment, holds over $1 billion in silver based purely off its suppressed valuation.

If it’s such an underrated super-metal, why hasn’t it taken off like gold has?

Well, one reason is rising interest rates. You’d think that a turbulent economic environment that requires rising interest rates to tamp down runaway inflation would cause alternative assets like gold and silver to rise in value, but higher interest rates actually cause banks and governments to invest back into long-term bonds so they can lock in that higher rate, which means a movement out of precious metals.

But in the long term, if you believe that the dollar itself is actually weakening, that the data coming out of the Fed isn’t completely accurate, and that the dollar is being artificially propped up, I can’t blame you for wanting to diversify your portfolio into precious metals.

With silver, investors are starting to see the arbitrage forming as the supply shrinks but the industrial demand increases. In fact, each EV contains 25–50 grams of silver, so the demand isn’t going away anytime soon, especially with a push to green energy across the world.

Just remember the adage that the people selling the picks and shovels during the gold rush made far more money than any prospector.

Even jeans from that era are worth more than the shiny metal. Late last year, a pair of Levi's jeans found in a mine shaft from the 1880s sold at auction for $87,400.

That’s more than an ounce of gold has ever been and probably will ever be worth.

But as I mentioned above, silver demand is going through the roof with the push to renewables like EVs.

The only thing standing in the way of mass adoption in the U.S. is the charging stations.

There are currently only 130,000 public EV charging stations in the U.S. right now.

By 2030, the U.S. will have 500,000, and Europe will have 3.4 million stations.

That’s some huge growth.

Over the last decade, energy has been the top investment, hands-down.

So an investment in charging stations is a combined play on energy, infrastructure, and precious metals.

In fact, one small clique of special U.S. companies is rapidly establishing a de facto monopoly on the charging infrastructure lining our streets and highways.

Most Americans don’t know this, but these companies are required to share a large slice of their income with U.S. investors. Right now, that comes out to at least $563 million of pure profit.

Investors who get in now are set to potentially pocket as much as $34,200 in 2023.

Stay frosty,

Alexander Boulden
Editor, Outsider Club

After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. Check out his editor's page here.

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