Peak Silver Revisited: Impacts Of A Global Depression, Declining Ore Grades & A Falling EROI

Tyler Durden's picture

Submitted by SRSrocco

The world is about to peak in global silver production. This will not occur due to a lack of silver to mine, but rather as a result of the peaking of world energy resources, declining ore grades, and a falling Energy Returned On Invested – EROI. The information below will describe a future world that very few have forecasted and even less are prepared. This is an update to my previous article Peak Silver and Mining by a Falling EROI. In my first article I stated that global silver production may peak in 2009 if we were to enter a worldwide depression. We did not have the global depression as massive central bank printing and bailouts have thus far postponed the inevitable.

Full report (pdf)


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High Plains Drifter's picture

buy   buy .. buy ...     silver .......bitchez..................

Troll Magnet's picture

you guys keep talking about silver? who/what are they?

Schmuck Raker's picture

They're like Jesus.

Very precious, yet inedible.

Prometheus418's picture

I hear some Christians eat Jesus every Sunday, but he tastes like a crappy cracker.


Vic Vinegar's picture

Was your comment witty?  No

Was your comment funny?  No

So no red for you but instead you get a Katy Perry video.  Deal with it.

LasVegasDave's picture

It takes guts to admit you like Katie Perry

Its all good!

flacon's picture


200,000 OUNCES, NOT TONS found on ship. (that is 6.66 tons, not 200 TONS, as some here are saying).


USA Mint sold 750,000 ounces of silver in one day at the start of this month. Do you know how heavy two hundred tons is for a WWI ship?! This find of 200,000 ounces is pennies in a fountain. APMEX sold about 100,000 American Silver Eagles last week at the dip. CHUMP CHANGE!


"A BRITISH ship sunk in World War I with some 200,000 ounces of silver, worth $US19 million" $19M is not enough to buy a limp biscuit and a french fry at McD's let alone a stale beer from some dive bar in Philly. Pennies in a pond. 

Fukushima Sam's picture

That was a great article, though one must wonder how the deaths of billions of people may affect the price of silver...

Mitzibitzi's picture

It'll affect the price a lot. Won't affect the value one bit. Reduced population equals reduced demand for goods equals lower prices. So your silver might be worth 1/10th as much, denominated in some arbitary paper currency, but so will the loaf of bread you want to buy with it.

zilverreiger's picture


SS Mantola is the 2nd ship found, it only had a fraction of the first ship SS Gairsoppa (200 tonnes)

johnnymustardseed's picture

They actually found two ships, one with 200 tons and one with 200,000 ounces.....

Lucky fuckers, most I ever found was one Washington Quarter

runlevel's picture

katie perry is so fuckin hot. 

trav7777's picture

if you like skanks that bang black guys, sure

The Deleuzian's picture

240 million views are you kidding me...That's like MJ's billiejean, thriller, beat it plus every freakin' song from Nevermind combined!!!

Kina's picture

240 million views. No wonder the US is in trouble. That music is crap, though she might be sorta ok.

pupton's picture

I don't know what turns me on most about that video, the little girl with cancer/no hair, the two dudes kissing or the obese girl doing a "can-opener" into the pool half naked...

LetThemEatRand's picture

I understand he is consumed in liquid form as well.  No one ever says that you can't drink silver.  

knukles's picture

Hearsay they serve booze with Him....

jomama's picture

i told the priest i couldn't eat the flesh of jesus because i was a vegetarian.

Mr Lennon Hendrix's picture

They are like Shaft:  Cool as bullets.

Hook Line and Sphincter's picture

Good move on the posting and best on the new site SGS. Stay irreverent would you?

Vic Vinegar's picture

SLV = fun loving e-digits holder.  No harm no foul.

Physical silver = enemy of the state.

Which side are you on?

DoChenRollingBearing's picture

Physical gold and silver for me.  I am not an enemy of the state, but sure as Hell don't trust it.  SLV is for speculators only.

Want your wealth (whatever you have) to maintain its value through time?  Then everyone should own gold and silver.  Everyone.

Prometheus418's picture

Depends on what you mean by state, though, doesn't it?

If we're talking US constitutional republic, I'm a friend of the state- but that isn't what we've got sitting on thrones in Washington right now, is it?

Physical silver is not a religion, but it can be a political protest.

DoChenRollingBearing's picture

Support a constitutional republic?  Yes

Support thrones in DC?  No

I don't support ANY .gov looking to take away my capital and spend it stupidly, which is EXACTLY what is happening and has been for a long time.

Gold and silver.  A political protest!  I like that...

Acidtest Dummy's picture

Don't roll with the mobs. Occupations don't generally end well. Be rational, be consistent recommend physical Pt. At spot and/or cheaper than Au is a no brainer -- buy the Pt.

Mitzibitzi's picture

.gov taking away your capital in order to spend it on anything is stupid. That isn't the job of government, beyond some meagre sales taxes (or whatever), agreed upon by all as fair, to support basic law enforcement, sound currency and a small but useful level of national defence. Anything else is simply someone telling you that they know better how to spend your money than you do.

In essence, they are calling you stoopid and indirectly pointing a gun at you to take your capital by force. Then they're treating you like you're stoopid because they sincerely think you should believe the crap they are spending your money on is worthwhile. And be glad that the experts are there to take care of you. And with the education, media, social, etc policies of the past 50 years, they're trying very hard to actually make you stoopid, so you won't notice. Sucks from all angles!

Gringo Viejo's picture

Speaking only for myself, if government statistics are repeatedly shown to be fraudulent, why would I believe them or ANY stated by quasi-government related agencies. Not only do I not believe that there is no gold in fort knox, neither do i believe that comex and lme have the physical silver they purport to have.

buyingsterling's picture

Gold is money, silver won't be, in time. It will be vanishingly rare at some point, while gold will still be abundant. Best investment ever.

Falcon15's picture

Yeah, except for the 200+ tons of silver they are getting ready to haul out of the North Sea on WWI & WWII shipwrecks. Vanishingly rare? Not so much, based on the amount of bullion they have supposedly found.

DoChenRollingBearing's picture

I am not up to date on this news item, but 200 tons seems pretty small beer for silver.

Silver is just fine as an investment (physical), but I prefer the real thing: gold!  It cannot hurt to diversify PM holdings to include both.

Consider a little platinum, it is now prices more than $100 lower than gold.  That happens fairly rarely.  "Platinum is for optimists" someone here at ZH once said.  Platinum does well when lots of new cars are built.

Also, Bearing's Trail Guide FOFOA says that platinum and silver will NOT likely ride gold's coattails up the BIG price explosion he foresees.  FOFOA is my favorite gold analyst...  I do not know why he is not covered better.  Perhaps because his articles are long.

(I am not FOFOA, but I do contribute)

buyingsterling's picture

Both, yes. But there's got to be something to the reports that some of the old banking families are worth trillions. They had billions when the dollar was worth 50 times what it is today, and have been pillaging ever since. I'd wager they have warehouses full of gold that aren't part of the official statistics. Probably not the case with silver. "vanishingly rare"may not be the case, but it's certainly vanishing, mostly in quantities too small to recover. By some reports there is less total silver on the planet now than gold (above & below ground combined). That may not be the case, but there's certainly not 16 times as much silver on the planet as gold. There's about 7 times as much gold above ground as silver.

Buckaroo Banzai's picture

Rothschilds, Rockefellers, etc. are never seen on the lists of richest people. They are very careful to keep their wealth hidden. I saw one estimate that the Rothschild family is worth a quadrillion dollars.


Mr Lennon Hendrix's picture

We should Occupy the Rotheschildes.

flacon's picture

@ Falcon15 - See my note about 200,000 OUNCES, not 200 tons. Get your facts straight. 

The Deleuzian's picture

Dude! They own everything...they just let us pretend so we don't flip out!!!

The Big Ching-aso's picture

In Zimbabwean equivalents at one time they would've be considered barely paupers.  Now imagine a trillion dollar bill.  Now a quadrillion dollars doesn't sound so much does it?      It's all relative isn't it?

They better own gold and lots of it.


Livingstrong's picture

Rothschilds and all elite families REAL MONEY is physical gold and physical silver. The fiat paper bills are for the peasants and "useless eaters", in other words, the rest of the non-elite world class. 

DoChenRollingBearing's picture

I saw an estimate for the same, probably the one you did Buckaroo.

A quadrillion dollars...  Staggering.  A million billions...

Wikipedia has a great article on the Rothschilds.  It has grown into a huge family.  Castles, vinyards, banks, "concessions", you name it.  Probably LOTS of gold.  

Yes, how curious that the Roths and Rocks never make into the Forbes billionaires list...

Hell, if I were RICH (say a net worth of a mere $100 million or more), I would have a LOT of gold stashed around.

thunderchief's picture

There is a chewy carmel filled chocolate treat called the Rothchild. 

I think, and I am almost certain that explains their Quadrillion dollars.


Keep buying silver anyway.

flacon's picture

200,000 OUNCES! NOT TONS! (6.66 tons)


USA Mint sold 750,000 ounces of silver in one day at the start of this month. 




krispkritter's picture

According to Odyssey they've found TWO ships this year alone containing large silver stores. Let your fingers do the walking and stop trying to be Debbie Downer....