The annual data for silver supply is in, and it shows that the structural decline in new supply for the silver market has strengthened.
As many of our readers know, silver supply from mining operations has been in decline.
That decline has just sped up. In a big way.
By Jeff Clark, Senior Analyst, GoldSilver and Adviser for Strategic Wealth Preservation. Silver mines aren’t pulling the same amount of metal out of the ground as they used to, which means less and less silver is coming to market. Why is less silver coming out of the ground? There are a number of reasons, but…
As we outlined in our silver supply/demand crunch article, the silver market has entered a structural imbalance. It is not temporary. Global supply is locked into a decline, leaving the industry ill-equipped to respond meaningfully to any spike in demand of physical metal for the foreseeable future.
The data is in: based on a review of reports from multiple consultancies, the silver market has officially entered a supply/demand imbalance. The structure now in place sets up a scenario where a genuine crunch could occur.