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Mine Production Stagnates As Silver Coin Demand Hits Record High
Mine Production Stagnates As Silver Coin Demand Hits Record High
Thomson Reuters has released their interim Silver Market Review including provisional supply and demand forecasts for 2015.
Highlights from that report include:
- Total silver supply is forecast to fall to 1,014.4 Moz* in 2015, down 3%
- Silver bullion coin sales at record high, up 95% year-on-year
- Coin demand should account for 12% of physical demand this year
- Silver market is expected to be in an annual physical deficit of 42.7 Moz* in 2015
- Silver prices this year are 18.3% lower than in the same period in 2014
*Millions of Oz
According to a recent review by silver analyst Steve St. Angelo, "The world has experienced consecutive silver deficits for the past 12 years". Recently published data shows "three of the top five silver producing countries are showing large declines in production compared to the same period last year". He also highlights the most important statement in the Interim Silver Market Review: "While such deficits do not necessarily influence prices in the near term, multiple years of annual deficits can begin to apply upward pressure to prices in subsequent periods".
Other observations from the review include a predicted increased demand from industrial silver consumers - the photovoltaics industry, Solar and ethylene oxide producers - however, the total industrial demand for silver is forecast to fall by 4% to 570.7 Moz, and to account for 54% of physical demand in 2015. Total physical demand is also forecast to contract by 2.5% in 2015, to 1,057.1 Moz, primarily driven by a drop in demand from the electronics sector, a downward trend which begin in 2011.
The global 'supply squeeze' in silver coins, has forced some mints to ration sales and sending US-based buyers to seek coins from overseas. The Perth Mint have stated demand for silver coins is unprecedented (see “Silver coin demand is absolutely through the roof” – Perth Mint").
Read the full Thomson Reuters Releases Interim Silver Market Review
Additional sources:
Silverseek.com 'World Silver Deficits –12 Years Running'
"Biggest Silver Supply Losers For 2015"
Read more on the GoldCore.com blog
DAILY PRICES
Today’s Gold Prices: USD 1085.15 , EUR 1014.80 and GBP 709.26 per ounce.
Yesterday’s Gold Prices: USD 1073.10, EUR 1004.18 and GBP 703.05 per ounce.
(LBMA AM)
Silver in USD - 1 Month
Gold had decent gains yesterday- $11.90 throughout the day - closing at $1082.00. Silver also finished up slightly - by $0.10 - to close at $14.27. Platinum gained $7 to $853.
IMPORTANT NEWS
Gold Holds Gains as Fed’s `Done Everything’ to Prepare Markets – Bloomberg
Gold logs largest daily gain since late October – MarketWatch
Meet the treasure seekers who hunt millions in undersea gold – MarketWatch
Gold set to end week near five-year lows as dollar drags – Reuters
Nestle Japan strikes gold KitKat in single-fingered salute to itself – The Guardian
IMPORTANT ANALYSIS
Waiting for Goldot Again – Goldseek.com
Europe plans crackdown on Bitcoin after Paris attacks – The Telegraph
The Most Important Question About ISIS That Nobody Is Asking – ZeroHedge
Will the Fed really raise interest rates in December? – MoneyWeek
World Silver Deficits –12 Years Running – Silverseek.com
Read more News & Commentary on GoldCore.com
Download Essential Guide to Storing Gold Offshore
Breaking News and Research Here
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The day will come when they Mine the landfills.
I'd love to sell you some Silver, but it's Used in Bombs.. and I'm a Pacifist.
I'm holding on to the silver as a way to get at least some money from this sytem (when it takes a shit) to whatever comes next.
While many countries flip their currency from the old money to the new money, I expect to see the U.S. go to a dual money system - leaving the Dollar as the old currency, along with its debt and entitlements - but then introducing a new currency. The old currency can then devalue - making the debt and entitlements worth less. Can you ever imagine us paying off $20 Trillion using our current GDP? But for "real money" - stuff needed to trade with the world - we will need a currency that won't devalue as fast (to avoid hyperinflation). The real currency will either have a balanced budget or be backed by GDP or by precious metals.
I just see too much turmoil if the U.S. decides to devalue the dollar by 30%, while keeping the dollar for global trade.
the plan some tin foil hat types see is: de population of the planet by massive numbers ..if true those left will have plenty of everything metals oil food.
there is some logic to the above..bio war and chem war are slowly appearing in the MSM as plans of the "terrorists".. the elites have the option of nuke bunkers per todays zh thread..and escape estates in far off lands ..can we feed all of Asia and Africa and S america with populations expanding??
if no then what do those in power plan for?
Listening to metal bugs sounds like endless pre-game commentary. No longer interested. Wake me at kickoff.
There's no controversy here. Buy some metal and hope like hell you never need it. Same idea goes for life insurance, same for liability insurance....
But you were interested enough to read this article AND post - so what does that tell us about you?
By then it will be too late.
Spoctor Din
OBTW: Some anonymous cowards voted you down, not me...
I remember when the switch came for US coins in 1964. I was in HS. We'd bounce quarters and halves off the concrete floors. The "real" ones, as we called the 90% coins, would have a nice "ring" when bounced. The debased coins would give a dull "thud". Money was never the same again.
A fun excercise in mental masturbation(for old duffers like me) is to go back and look at dollar prices of all sorts of stuff.
http://mclib.info/reference/local-history-genealogy/historic-prices/
Then price the same stuff over time in ounces of gold.
It's not something new or profound...just another way for average folks to sit around the kitchen table and see how badly the gov't and central bankers have fucked them over time.(And yes, Geo. Carlin's "American Dream" skit influenced that line) :)
hairball--the redneck
Clyde the Raven--the smart one
The people who don't understand the value and utility of holding gold and silver in the form of bullion coins, bars, liquid forms of the metal....These are the same people who don't understand what "real money" actually is, and how it facilitates trading for goods and services in a functioning real world economy.
Anyhow, that's how me and Clyde the Raven see it. You can find the pointy head support at Mises.org
hairball :)
I like physical metals because it does not evaporate like a 401k can.
The author is a moron. There is no deficit. There is no shortage. Silver is used in industry. Silver in private hands is silver in inventory that has to be sold at some point to someone who can use it.
Whether silver inventory is held in private, corporate or banker hands it makes no difference. It is still in inventory and not being used.
There isn't a lot of silver actually mined, and sitting in 'inventory' as coins/bullion. That's the whole point. Mine supply has been less than industrial consumption for a significant period of time. A significant amount of coinage worldwide used to be made of silver. Now almost none is silver.
Excuse me Gramps, but nope, I do not HAVE to sell my silver at some point. I can choose to keep it for the rest of my life and have my heirs feel the same way.
If supply and demand begin to matter again,
we'll be sittin pretty.
(Sounds like a chorus from a country song, don't it?)
Gonna have to call horsheshit on this one.
The deficit will only intensify as a lot of Copper and Zinc production comes offline. Copper and Zinc being the base metals of which a significant amount of silver is derived as a co-product.
I just want to mention there is even less Zinc left on the planet than Silver which is hard to imagine, its used in making alloys and all kinds of stuff. There's even less lead. At some point these will become valuable, in my opinion. It all depends.
http://www.visualcapitalist.com/forecast-when-well-run-out-of-each-metal/
I would be interesting if old shooting ranges, and duck blinds became lead mine pits.
Silver - it's what's for dinner.
In 1964, worth a buck per silver dollar.
In 2015, pre 64 silver dollars trade at a stupid premium over spot - even for junk silver coins.
Based on value in 1964, a silver dollar bought about 4 gallons of gas.
Today, based on spot value only, it buys about 7 gallons of gas.
So, no, you didn't get filthy pervert rich holding silver from yesterday to today, but your monetary savings increased in value in a nice safe haven stable significant manner - absolutely no risk at all whatsoever - if you stuck to physical metals.
And, that is right now, looking at an artificially manipulated bottom to the spot price thanks to 300 times annual production paper silver bitch slapping the price around every time an institutional player wants some free cash flow by creating, and then capitalizing on volatility.
Fuck me running, it is a widely accepted fact that average cost for silver production today is hovering around $20.00 an ounce. No fucking wonder annual production is slacking off - keeping it in the ground is a safer bet if you are a miner.
When those margin playing institutional cock suckers burn in their own fire of bullshit paper silver, price discovery will be interesting, to say the least.