The world silver market may be on the verge of a major supply crunch.
Two-thirds of the top silver miners have suffered significant production decreases in 2017, according to information released by World Metal Statistics.
Through the first eight months of this year, silver production in Chile has dropped 20%. Austrailian production has fallen by 19%. Silver production in Mexico is down 2%. Peru has seen a 1% production decline. And China has had the biggest drop in mine output, according to the report, falling by a whopping 25%.
A report by SRSrocco identifies several factors driving silver mine production lower.
I believe global silver production will take a big hit this year due to several factors including, falling ore grades, mine closures, and strikes at various projects.’
The report highlights some of the production woes for major producers. Overall, production at top primary silver miners has fallen 9 million ounces so far in 2017 compared to the same period last year.
This post was published at Schiffgold on NOVEMBER 15, 2017.