Followers | 2 |
Posts | 923 |
Boards Moderated | 0 |
Alias Born | 03/22/2010 |
![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Thursday, June 06, 2013 11:26:33 AM
World-Wide industry (plus photography) uses about 500 million ounces of silver per year (fact from silver institute), but the supply is 1048 million ounces per year (2012). All the excess silver is STORED in one form or another each year, forming a massive silver glut of stored silver.
570 million ounces of silver per year (MORE than we USE each year) is produced as a "waste" byproduct of copper, zinc, lead and other mining. Regardless of how low silver prices go (even to $1.00 per ounce), these copper and zinc and lead miners will still produce 570 million ounces of silver per year.
Tiny amounts of silver are in the copper and zinc and lead ore. The silver gets a free ride through the entire mining and smelting process right down to the very, very last step where the silver is removed from the copper (and zinc and lead) to purify the copper (and zinc and lead). The ONLY costs attributable to silver are the very last part of refining and the cost is WELL UNDER .50 cents per ounce.
Because the amount of silver in each unit of copper and zinc is so VERY VERY low, when silver prices crash it has very little effect on the economics of producing copper and zinc, so they just keep producing byproduct silver no matter how low silver prices drop.
Primary silver mines account for only 220 million ounces of the 1048 million ounce silver supply. Primary silver mines have an average cash-cost of $5-$8per ounce (average in 2010, 2011, 2012). Some, like Hecla have a cash cost of $2.70 per ounce (2012), but we don't even need ANY of the silver from primary silver mines. It's all just stored.
Hecla can generate excess cash in their MINING OPERATION even if silver prices drop to $4 per ounce, but we don't even need their silver.
Silver could crash to $1 per ounce and all the primary silver mines could close and we'd still have all the silver we need for industry.
PS. We produce all the copper we need for .10 cents per ounce (as a point of reference).
Recent SLV News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/08/2024 08:40:23 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/03/2023 06:39:51 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/04/2023 06:19:53 PM
- Will Silver’s 200-Day MA Break? • ValueWalk • 06/30/2023 07:38:03 PM
Green Leaf Innovations, Inc. Expands International Presence with New Partnership in Dubai • GRLF • Jun 24, 2024 8:30 AM
Bemax Inc. Positions to Capitalize on Industry Growth with New Improved Quality of Mother's Touch® Disposable Diapers • BMXC • Jun 24, 2024 8:00 AM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM