The annual data for silver supply is in, and it shows that the structural decline in new supply for the silver market has strengthened.
Last week saw the market lose yet another major producer to the COVID virus. The United States Mint, North America’s largest producer of gold and silver bullion products, announced the closure of its West Point, New York facility on Wednesday, due to concerns for their workers’ safety.
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.
A lot of readers liked our article on how much cash could flood the gold market once institutional investors start buying. Now it’s time to look at silver.
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.
These Headlines Say Gold is Building a Base for Something Big.
An article by Jeff Thomas.