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The gold crash might have a silver lining, literally


Published: Aug 1, 2015 8:28 a.m. ET

70% of silver production in 2014 came as a byproduct of other mining

It has been an unhappy July for gold bugs, but the yellow metal’s rout—and declines in industrial metals prices as well—could be setting the stage for a significant silver rally, argues one analyst.

That’s because silver is often mined as a byproduct of copper gold, zinc and lead, wrote Simona Gambarini, a London-based commodities economist at Capital Economics, in a note. In fact, around 70% of silver production in 2014 came as a byproduct of other mining activities (see chart below).

All in all, it should add up to a 1% fall in 2015 silver output, said Gambarini, who has penciled in a year-end price target of $18.70 an ounce.

Cont @ http://www.marketwatch.com/story/the-gold-crash-might-have-a-silver-lining-literally-2015-07-31