Two-Thirds of Top Primary Silver Miners Suffered Production Declines in 2017

The comments above & below is an edited and abridged synopsis of an article by Steve St. Angelo

Two-thirds of silver miners have suffered declines in production this year. Many silver-producing countries are also experiencing a reduction in mine supply. Chile’s silver production was down 20% in the first 8 months of 2017, while Australia was down 19%, Mexico 2% and Peru 1%.

The Silver Institute will be releasing its 2017 Silver Interim Report soon, which will provide an update on current silver production and forecasts for the remainder of the year. Global silver production will likely take a hit due to several factors, including falling ore grades, mine closures and strikes at various projects.

For example, Tahoe Resources was forced to shut down its Guatemalan Escobal Mine in July. Tahoe’s silver production declined a stunning 6.7 million ounces Q1-Q3 2017 versus the same period last year. Overall, production at top primary silver miners fell 9 million ounces in 2017 compared to the same period last year

Global silver production will take a big hit this year. We could see world silver mine supply fall by 40 to 50 million ounces in 2017 if the trend continues for the remainder of the year. World Metals Statistics shows Chinese silver production down by 25% in the first 8 months of 2017, but St. Angelo doubts this number.

The world’s economies are being propped up by a massive amount of debt, derivatives and money printing. When they finally crack, global silver production will fall considerably as demand for base metals drops like a rock. Fifty-eight percent of world silver production is a by-product of copper, lead and zinc production. So when base metal demand falls, so will base metal production.

Thus, as the market and economy continue to disintegrate, global silver supply will fall at the same time investment demand surges.