At first glance, there may not seem to be much of a relationship between the precious metal silver and the US President, but in fact, the precious metal silver is the best thing that could happen to the US President Joe Biden.
First of all, the stimulus is certain under Biden, and it will not be small.
Specifically, Biden will do everything in his power to support the U.S. economy by increasing borrowing, further expanding the deficit and issuing debt.
Moreover, Biden has made public his commitment to a "green New Deal" to move the U.S. economy toward renewable energy and net zero carbon emissions.
All of these measures will help silver prices rise over the next year or two.
More and more stimulus
With Mr Biden in office, more stimulus is to be expected.
Even though the Senate is still controlled by Republicans, congress is under pressure to pass a new stimulus bill.
And despite the recent spate of good news about vaccines, the "return to normality" of the economic and social order will be slow, and the virus will not vanish overnight.
Even Colin Powell, chairman of the Federal Reserve, has recently repeatedly called on Congress to provide more bailouts for struggling businesses and more help for Americans seeking jobs.
So, given the economic damage caused by the epidemic, expect more stimulus under A Biden administration and little respite for the Fed's money-printing machine.
The Fed is expected to keep monetary policy at zero interest rates until at least 2023.
This is clearly good news for the precious metals gold and silver.
The green economy needs more silver
The second driver of silver's rise was the "green New Deal".
Mr Biden's goal of achieving net zero emissions by 2050 will certainly be costly.
Under the plan, the federal government would contribute $1.7 trillion, followed by another $5 trillion from the private sector and local investment funds.
Moreover, a green New Deal will require a lot of minerals, of which silver is the key.
In June, the Silver Institute released a report called "Silver's Important Role in Solar Energy," which noted that solar power generation in the United States has increased dramatically over time.
From 2008 to 2019, solar power generation grew at an average annual rate of 47%.
About a third of North America's new energy capacity came from solar last year.
Silver's minimum resistance at standard temperatures makes it difficult for it to be replaced by other metals in solar installations.
Silver is also one of the most reflective and photosensitive metals available today.
So even if silver prices rise, industrial demand is likely to remain strong.
In addition to its dominant role in solar panels, silver is increasingly becoming an important part of electric and hybrid cars.
Silver is used not only in vehicle connectors but also in some battery technologies.
To achieve his goal of a 100% clean energy economy, Biden also talked on the campaign campaign about the use of advanced nuclear power technology and the use of silver as control rods in nuclear reactors.
Drop in silver supply + demand = silver prices rose
Despite increased investment and industrial demand, global silver mine output fell for a fourth consecutive year in 2019, mainly due to a dearth of new projects under development, lower ore grades and depleted reserves.
In addition to the silver Institute's forecast of a 4% drop in mine supply in 2020, mine shutdowns caused by the coronavirus have also been blamed.
So we expect silver prices to have a very bright future ahead of them.
Silver will be one of the biggest beneficiaries of Biden's decisions.
