Silver 101: Production By Country

Tyler Durden's picture

From the same folks at Money Choices who brought to you: "Gold 101: Who's Got It And Who's Finding It" now comes the 101 lesson in silver: world silver production by country. While his may not come as news to many, the bulk of production comes out of three distinct countries: Peru, Mexico and China. And with the price of the metal having surged more in the past several months than virtually any commodity, suddenly the producers may find themselves with substantial leverage to dictate terms of delivery: think of what happened to Rare Earth Minerals when China blocked exports briefly. With the US not even in the top 5 of world production, could we soon see the formation of yet another cartel, especially when one considers that unlike gold (so the thinking goes), silver also has industrial uses?

The Rise of Silver (Infographic)

Courtesy of Money Choices

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Quinvarius's picture

That is not a lot of silver production.  Good thing JPM sold enough to go around 2 years ago.  Haha!

JuicyTheAnimal's picture

There were some 3 plus million silver eagles purchased from the mint in November.  If that pace continues our entire silver production might soon not be enough to even cover silver eagle demand!


update:  silver appears to have bottomed at 28/oz spot.  That's very bullish that this sell off/ profit taking may very well be over already. 



flacon's picture

Let's hope this madness has ended. What a whacky 24 hours, eh?!

Sudden Debt's picture

it's like the whole market is working against me today...

ZackLo's picture

Yeah the PTB had there day today....luck I got the 32's fo april=)

TWORIVER's picture

Action is bad and a test of up trend/ support at 26.75 is likely imminent.

GoinFawr's picture

DXY chart doesn't look so shit hot either, IMHO.

TWORIVER's picture

I think DX/Y looks like it wants to go to 83.5. Support at 79 has held up well over the last few days. If that changes then so will my feelings on it. Good luck.

GoinFawr's picture

It has to punch down past 79, eh? I'm thinking you just might get your wish, though it certainly has a way to go yet.

JMHO, natch.


Update: Dec.12,2010

As low as 79.20, getting cloooooooseeeeer....


Update: Dec.14,2010

78.95 Uh oh.

Ag@ 29.84 US bitz of pretty polly;  define 'imminent' for me wouldja deux riviere.


Update: Dec.22,2010

Hoo hooo Deux Rivieres, that USD baby's got some bounce after all. Not too sure about your silver call though:

Ag @ 29.29, but DX(/)Y 80.56!! I'm generous in giving you a 50% grade on this one, as technically the DXY dipped below your 'opinion changing' 79 level, and hasn't come anywhere near your target. Also, silver hasn't touched anything in the 26's (and it doesn't look like it's going to 'imminently' either).


ColoradoBikerChic's picture

'Action is bad and a test of up trend/ support at 26.75 is likely imminent.'

I'm seeing that too.  But of interest is, the 2.5million 1 minute spike on the SLV at $2750ish ( $28.10ish silver spot )at 11:04 EST today... thus far, that buy in is holding the bottom on todays chart.

mrgneiss's picture

Do you think that large order in the SLV put a bottom in for silver?  Maybe, most would argue that SLV just tracks the POS and any large order that happened in SLV at the same time spot silver bottomed for the day was just coincidence, but then again if the same entity that is shorting the shit out of silver knows it is done shorting for the day and is the same entity that runs the SLV............I'm just saying..........

ColoradoBikerChic's picture

Bottom callers and Top caller both become cotton pickers, just sayin'.  In addition to my comments above.. note that the Hourly on SLV is now bouncing off the 200MA as well as bottom trendline from the last sell-off in early Nov. So, if you're day-trading the paper SLV for some paper profits, well, pick your best entry based on candlestick patterns, fav misc chart studies, and macro news, then hold on.

boricuadigm-shift's picture

Loaded up on some PSLV to trade the volatility and pay the bills :-)

Take advantage of it. :-)

dehdhed's picture

on my 4hr chart i've got channel support and trend line support from 11/17 intersecting on friday at about the same hour they announce next months pomo.   right now it's just riding those lines since that last big push down. they intersect around 28.50 and if my hunch is correct, pomo could be massive given recent bond action and the tax cut and unemployment extensions.  could get interesting pretty soon.

unky's picture

What about rate hikes in china? Is this already priced in (short term silver)

Sudden Debt's picture

every event is priced in till 2050...

destraht's picture

I've been playing long with silver lately. I feel like for the next several plays that it is impossible to lose money but also I'm annoyed that I'm not catching all of the volatility. I feel like I'm standing next to a waterfall with a coffee cup. Sure its good profits but so much of it is escaping me.

unky's picture

can u post a link of this picture in full size?

CrazyCooter's picture

The content at the link provided above had a bigger pic:


Capsaicin's picture

is the border with Mexico leaking in both directions? I'm heading south...

DosZap's picture

Better go WAY south.

Mexico is not Foreigner friendly, except for spending visitors.

Almost impossible to get citizenship, and buy property, or own a business(unless you have a majority Mexican partner).

Too bad they are not as friendly towards Americans moving there, as we are allowing anyone from there to come and drink freely, forever.

No quid pro quo here mate.

The most corrupt Gv't on the planet, yes, even worse than ours.

DoChenRollingBearing's picture

Al Peru, Putaz!

I do not know if the rules are still the same, but a few years ago if you invested $50k here (I am in Peru right now), they would give you a passport.

Our bearing business will likely have its best year ever.

Mr Lennon Hendrix's picture

Buy silver!

And no wonder DoChen likes Peru.

Why is Now the Best Time to Invest In Precious Metals?:

DoChenRollingBearing's picture

Peru is really cooking now!  Also No. 2 in copper production, No. 5 in gold.

If the rules are still the same (?), a $50k investment gets you a passport.

But, re pricing power, I think Peru is not in a position, or really wants to, ´do and OPEC´.

SwingForce's picture

Beautiful! I hope you understand also, that with each shovel of silver, you dig up gold, copper, nickel, Pabst Blue Ribbon beer cans, everything- you get ALL metals. However, the industrial usage figures vs. production have been at a terminal deficit for over 20 years!

Shameful's picture

Get some Poland! Would have never guessed their production was close to the US. US has some good silver areas, Nevada still has a lot if I'm not mistaken.

Sudden Debt's picture

Looks like we finally found out where the Nazis hid their silver and gold stash :)

panika2008's picture

Actually, you illiterate, it's OUR gold (several hundred tons robbed from Polish banks by nazis in 1939-1945) that the Germans and, by extension, occupying allied forces "forgot" to return to us. The production depicted on the graph is genuine silver that is actually dug out of the ground.

panika2008's picture

Almost all of the production from Poland shown on this graph is offshot of KGHM's, a major Polsih copper producing corporation, copper mining. Might be interesting fot those of you looking do diversify into foreign miners, the company is very stable and has a decent management (but of course due dilligence should be apllied).

DosZap's picture


Yeah,they do, also most of the Gold reserves(owned and occupied by US Armed Forces.

Unca Sammy, gotta Lub em'.

Sofa King's picture

OT - Some guy from the Tocqueville Gold Fund and basically said that he would drop that fund like a bad habit at the first hint that the Gold Rush was ending.  The Power Lunch crew almost lost their shit. Never seen such a blatent admission, it was great!

DosZap's picture

And what's he going into?.


Xibalba's picture

The JP Morgue is just tighenting the noose around the taxpayers neck with all this naked shorting. 

johnnymustardseed's picture

Actual production means nothing when the paper silver is 18 Quadrillion ounces

CrazyCooter's picture

I think he was being sarcastic ... SLV (or was it GLD) was reported on ZH as being 100:1 in actual shares to bullion ... either way, its probably wise to ignore SLV unless day trading is your thing.



Old Pecksniff's picture

I say the silver valley in Idaho is the biggest producer.

SwingForce's picture

Yes, but WAS. EPA put an end to that. Its a Ski area now, nice too.

Superfund site now a golf course.

spartan117's picture

Hecla still mining in the Silver Valley.  So is U.S. Silver Corp.

assumptionblindness's picture

Damn, Mexico is sitting on a lot more than I thought.  To our neighbors: Stop shooting each other and start digging!

Bubbles...bubbles everywhere's picture

Why dig when you can just steal? Isn't that what JPM and company are doing? A lot of the silver production areas are controlled by the narco. Very soon they are going to be kidnapping miners if this keeps up.

Political Athiest's picture

Eh. When the NAU is complete we'll all be family. And what's a little looting among family members?

destraht's picture

Mexico should be incredibly rich. Oh well.

Acidtest Dummy's picture

Does look incredible to me too. I'd suspect Mo (molybdenum) if I were a suspicious type.  :)


DosZap's picture

One of the wealthiest Mexican bidness man, has been trying to get Mexico back on the Slvr std(coinage), and also the USA.

To no avail.