Last year total mine production for silver was 819 million ounces, yet demand was 1.1 billion ounces.
The total shortfall was 262 million ounces for 2013. However, much of that gap was closed by recycled silver and government stock piles…but not all of it, the shortage is there.
- Recycled silver supply last year fell 24%, the largest drop on record!
- 7 out of 15 of the leading primary silver mines produced LESS silver in 2013 than they did in 2012.
- Nevada, the silver state, produced only 7.4 million troy ounces in 2013, compared to 25 million troy ounces in 1997.
This silver story just gets better and better, ore grades have collapsed, the mining companies can’t turn a profit, and exploration has almost come to a complete halt.
On the demand side, physical demand rose by 13%, so much so that the U.S. mint literally sold out!
- China, who in 2005 used less than a million ounces of silver for solar panels, absorbed 35 million ounces for solar in 2013.
- 62% of silver is used for industrial applications like nearly all of our electronics, biology, medicine, and other commercial uses. 21% is used for jewelry and 12% for coins.
- 95% of all silver consumed is gone, never to enter the supply side again.
On the industrial side of silver, there is about 28 cents in your cell phone, unless silver reaches the thousands of dollars per ounce, that silver is gone!
Silver formed into jewelry is the most costly silver, both because of its use and personal value to those who own it. This silver is essentially gone!
Silvers new uses are rising, all available supply is being consumed and a real shortage in the physical markets is being completely ignored due to the paper markets which sell at least 100 ounces of silver for every physical ounce that in reality is available.
Silver’s use in solar panels was not even reported in 1999, by 2015, it is estimated that 100 million ounces of silver are projected for solar energy use.
The price of silver, set largely by the COMEX, currently has one of the highest concentrated short positions with the 8 largest COMEX shorts near record highs for silver. Unlike other commodities where it is the producers themselves hedging their sales and locking in prices for future production, the actual silver miners hedging is at a multi-decade lows.
This silver manipulation by the worlds largest banks, supported by the CFTC, U.S. Treasury, and Federal Reserve has been so successful, that they have not only crushed the price of silver in spite of rising demand, but they have crushed the mining shares and future investment capital for the entire sector.
Simply put, the silver shorts will be squeezed due to a real physical silver shortage that is upon us, when this happens, all hell will break loose in both the paper and physical precious metal markets.
Your opportunity is to own silver today, for less than the cost an actual mining company can even produce it for.
This is investment is not an IF question, but a When question…. When silver rises…When the price explodes…When the shorts get squeezed out…
This article is brought to you courtesy of Gold Silver Worlds, who advocates to own physical gold and silver outside the banking system.