The Silver Price Surges Higher As Mine Supply Falls In Top Producing Countries

IMG Auteur
Published : August 23rd, 2019
592 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...
Category : Gold and Silver

As the silver price rally continues, mine supply from three of the top producing countries fell significantly this year.  Peru, Chile, and Mexico all reported declines in silver mine supply in the first half of the year, with Peru suffering the largest dropoff.  With these three countries accounting for 45% of total global silver production, a reduction in mine supply can impact the overall market.

According to the mine supply data reported by each country, Peru’s silver production is down 10% in the first half of the year, while Chile fell 7% and Mexico was lower by 4% (Jan-May). The total decline in silver production from these three countries in just the first half of the year is 12 million oz (Moz):

As we can see from the chart, Peru’s silver mine supply for the first half of 2019 fell 216 metric tons, Mexico declined 113 metric tons and Chile lost 44 metric tons versus the same period last year.  As I stated, Peru and Chile’s silver production data was for the first six months while Mexico’s figures were for Jan-May.  Mexico will likely update their data for June within the next week.

I also wanted to provide the actual data reports released by these three countries so that you can see for yourself the silver production declines in each:

Here we can see that silver production reported by Peru’s Ministry of Energy and Mines shows a 10.46% decline in silver (plata) mine supply from Jan-Jun.  Next, Chile shows a 7.2% decline in its domestic silver mine supply in the first half of the year while gold production increased 13%:

And lastly, according to Mexico’s INEGI, the country’s silver production fell 113 metric tons, or 4.4% in the first five months of 2019:

Here are the rankings of the top 10 silver producing countries in the world in 2019, according to the World Silver Survey (figures are rounded):

  1. Mexico = 197 Moz
  2. Peru = 145 Moz
  3. China = 115 Moz
  4. Russia = 43 Moz
  5. Chile = 42 Moz
  6. Bolivia = 40 Moz
  7. Poland = 40 Moz
  8. Australia = 35 Moz
  9. USA = 28 Moz
  10. Argentina = 26 Moz

I could not get the total mine supply data for Russia, but its largest primary silver mining company, Polymetal, reported a 15% decline in silver production for 1H 2019 vs. the same period last year. So, it seems that many countries are showing declines in silver mine supply this year, right when the silver price has broken above a 6-year resistance level.

Polymetal’s silver production in 2018 accounted for nearly 60% of Russia’s total silver production that year.  So, it will be interesting to see how the rest of the year plays out with these top silver producing countries.

Lastly, I will be putting out a new video this weekend on the SILVER MARKET PRICE action. It looks like silver has broken above that important $17.25 level with the markets selling off big time along with the race for Government Bonds to go further into negative interest rates.

If you have not seen my recent Silver Price Video, please check it out below:

If you are new to the SRSrocco Report, please consider subscribing to my: SRSrocco Report Youtube Channel.

HOW TO SUPPORT THE SRSROCCO REPORT SITE:

I would also like to thank those foundation supporters, who have chosen to become a member by making donations through PayPal to further the research and publishing work at the SRSrocco Report.

So please consider supporting my work on Patron by clicking the image below:

SRSrocco Report

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Independent researcher Steve St. Angelo (SRSrocco) researches areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy. Steve considers studying the impacts of EROI one of the most important aspects of his energy research. For the past several years, he has written scholarly articles in some of the top precious metals and financial websites.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS