Third Largest Producer Of Silver Says Production Is Now "Totally Paralyzed" Following Week-Long Strike

Tyler Durden's picture

In news that should move the precious metals market, we learn that the world's third largest producer of silver (as well as zinc and lead) has announced its production is now totally paralyzed. From Reuters: "A week-old strike at Bolivia's San Cristobal mine has totally paralyzed production and exports of silver, zinc and lead, a union leader said on Wednesday. San Cristobal is the world's third-largest producer of silver and the sixth-largest producer of zinc, according to Japan's Sumitomo Corp, which owns the mine." For those who recall basic central planning economics this means that silver should plunge immediately, and should react even more adversely on news that crude supplies in the US are surging. After all, oil supply demand is far more critical to silver price discovery than the actual supply of a metal that unlike gold, is used in various industrial and peacebringing applications (see Operation Odyssey Dawn).

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Theta_Burn's picture

LOL at opening Mis

Buckaroo Banzai's picture


Oh regional Indian's picture

If someone had taken my advice to sell gold into silver on 18th October 2010, they would have been sitting on a hefty return (Gold from 1370 to 1420, 5 % or less and Silver from 26 to 37.XX a 36% return). It's the only "call" I ever made, time stamped.

I'll say the same again, now. Sell your gold into silver. Or don't. All good.



IQ 145's picture

 Been sayin it so long, I'm tired. Nobody listens. Cut in production is "alright with me" !!

SilverIsKing's picture

Q: Guess what time it is?

A: Time for you to make another call.

Cash_is_Trash's picture

Cisne Negro putazzz = Black Swan bitchezzz

Lord Koos's picture

In Oct 2010 the gold to silver ratio was 60:1 -- it is now 38:1 so your advice might not be so handy this time.

Oh regional Indian's picture

I know. I am saying it has a lot further to correct. Pendulum+Reality.


truont's picture

In news that should move the precious metals market...

silver is used in various industrial and peacebringing applications (see Operation Odyssey Dawn)....


francis_sawyer's picture

++ "peacebringing applications" - ror

Imminent Crucible's picture

Don't laugh, it's called OBHA:  Ordnance-Based Humanitarian Assistance.

Give Obama another Nobel Peace Prize.

francis_sawyer's picture

Yeah... Because his "Peacemakers" pack a helluva whallop...

akak's picture

So sayeth the Obamessiah, bankster blessings and taxpayer funds be upon him.

sunkeye's picture

@imcru re  'OBHA:  Ordnance-Based Humanitarian Assistance.'

this is pure genius hope you dont mind my submitting this for an orwell award

you sir are a double speak savant i ever hold pol offc you gotta be press officer pls man dont hold out on me then duty calls and we'll needya

hell forget me you just run and handle your own press sparring sessions

Oh regional Indian's picture

That is a good one Imminent.

How about OBAHA: Ordenance Based Assymetric Humanitarian Assistance.

Now it rhymes with certain namez, taking namez!


YouBetYourLife's picture

Yet despite news like this, and the increasing interest in CBs to own PMs, etc., the bankers apparently today have once again initiated a bear raid which is keeping PM and miner prices from rising as much as they should be.

Harvey Organ mentions these coordinated raids all the time. It's criminal collusion that should result in many perp walks.  But nothing happens.  

Robot Traders Mom's picture

AAPL down over $2 today...Go to yahoo finance and you can see the bloodbath for yourself. Looks like the golden age of tech stocks is coming to an end! At this rate, AAPL will be on the pink sheets by the end of the year.

Goodbye Robot!!!

umop episdn's picture

I maked you a tech bubble but I popped it. Ooopsie!

lincolnsteffens's picture

What bloodbath? It is low volume down day. In fact check out DIA it probably won't break 4mil. shares! This market is gliding on lower warm air currents every week. Just like gliders when the updraft ends you either spiral down rapidly or descend orderly to try a smooth landing.

InconvenientCounterParty's picture

"peacebringing applications"

hehehehe. That's what the Borg call it too.

Bleeping Fed's picture

And thus continues the crack-up boom alternate universe, where less oil demand equals higher prices, more bad news equals more equity inflows, and where cats chase dogs.  Shortly to follow will be the return back through the wormhole into reality and descent into the abyss.

ghostfaceinvestah's picture

It all makes sense when you figure the unit of measure is being changed/debased.

Put another way, if someone shortened the length of an inch by 90%, we would all be over 50 ft tall.  Doesn't mean we would be any taller.

Bansters-in-my- feces's picture lots of the stuff.....

Jon's loaded....

akak's picture

Jonny N., of Kitco infamy, is certainly full of something, but I strongly suspect that it is not silver (nor its "evil" stepsibling, gold).

chinaman's picture

see ya, gold at US5000 and silver US320 based on 1:16 ratio.

yee ha !!

Long-John-Silver's picture

Oil Demand Destruction + Silver production strike = BULLS Bitchez!



Weisbrot's picture

does that mean that the silver sheep dont get sheared yet?

Quintus's picture

Ha ha ha.  

Like that old-fashioned supply/demand thing has anything whatsoever to do with the price of Silver.  Everybody knows we've moved on from that old paradigm of markets setting prices.  

Mr Anderson's picture

Econ 360 The supply curve has been renamed the Big Ben Curve, the demand curve Tiny Tim.

tmosley's picture

Yes, that's right.  We will blame the upcoming silver derivatives explosion on the STRIKERS!


Oh well.  I've got mine, bitchez.

francis_sawyer's picture

Unfortunately - the "paper shorts" have scabs that busted the union lines and so the factory there is still in operation...

koeleköpke's picture

is Blythe the strike-master ?

Cash_is_Trash's picture

Somebody's playing with the boiler in this too hot, too cold market manipulation.

Bolivia nationalization bitchezz

LudwigVon's picture



For those who recall basic central planning economics this means that silver should plunge immediately, and should react even more adversely on news that crude supplies in the US are surging

surfersd's picture

Supply who cares about freaking supply? Oh maybe Blythe does!! 

DocLogo's picture

long bullets, long cruise missiles

Josh Randall's picture

Attica! Attica! Attica!

ghostfaceinvestah's picture

Wait until the entire country of Peru goes offline.

SilverRhino's picture

It should, but Blythe and Bitches Inc. will continue to suppress the price.   I have silver pegged as trading flat/sideways for a few weeks.

37 is a good support at this point though.  Of course I would LOVE to be smoking crack and totally wrong.  ;-)


Sophist Economicus's picture

Prechter just lowered his stop loss on his top calling silver short to $37.80.


So much for Deflationist vision of running into toilet paper, ehm, cash

barkster's picture

Prechter is half right. He is right in that we will have deflation. Where he fails to see is that the deflation will only be in terms of real money (gold and silver). Prices relative to gold and silver will drop. Prices in fiat currencies will not. Unfortunately for him, being half right in this case is the same as being wrong.

CH1's picture

Excellent observation! That's what happened in Weimar.


Sophist Economicus's picture

Ageed.   He seems to have a real hard time making this transition.   He is stuck in the commodity mentality for Ag and Au.  Hope I'm around to see this all play out

SubjectivObject's picture

My Subjectivness intuits extendend sideways until the fundamental demand pressure is fully sufficient to overwhelm the unregulated paper threats and preprog algo antics.

DosZap's picture

Breaking $38.00 and holding it is key.

$36.00 is painful, $38.00 is murder for the Bmasters Beasts.

It will cost JPM Billions.

Good thing they went to Cu.

tekhneek's picture

Definitely bearish for silver. Tyler, any word on their estimated output in 2011, or the numbers from 2010? I see they had about 42.6 million ounces in 2009 (Sourve: silver institute)

Is there any way we can determine the supply lost in this strike? In 2009 they would have lost 1.2 million/week from my calculations.