BREAKING NEWS: U.S. Silver Production Plunges

While the Federal Reserve continues to rig the financial markets by way of its insane interest rate policy, U.S. silver production took a big hit in September.  How big?  Well, let’s just say…. it took me by surprise.

According to the U.S. Geological Survey (USGS), overall domestic silver production for 2015 has trended lower compared to last year.  However, the recent data for September show a much larger decline.

U.S. silver production for September fell a staggering 20% compared to the same month last year:

U.S.-Silver-Production-SEP-2014-vs-2015

As we can see from the chart U.S. silver production fell to 82.6 metric tons (mt) in September compared to 103 mt during the same month last year.  This amounts to a decline of 20.4 metric tons or a 20% plunge versus last year.

This is a large amount if we compare the total decline year to date in 2015 (JAN-SEP) is only 41 mt (5%).  I asked the USGS silver specialist if he thought the September’s production figures would be revised higher in the following months.  He responded by saying, “Probably not.”

Falling silver production is also taking place in several of the top producers in the world:

Mexico = -4% (Jan-Sep)

Chile = -4% (Jan-Aug)

Canada = -23% (Jan-Oct)

Australia = -41% (Jan-Aug)

(data from Canada Dept of Natural Resources, Mexico INEGI & Chilean Copper Commission)

As I have stated in many articles and interviews, PEAK SILVER will occur first in the base metal mining industry where the majority of by-product silver is produced.  According to the data from the 2015 World Silver Survey, 55% of all silver produced in 2014 came as a by-product of zinc, lead and copper production.  Furthermore, 13% came as a by-product of gold mining, while the remaining 31% was from primary silver production.

Global silver production will fall more rapidly in the following years as an increasing number of base metal mines shut down due to lower copper, lead and zinc prices.  This will occur right at a time when investors finally realize just how undervalued silver is compared to most of the highly overvalued paper garbage the world is invested in.

Lastly, something changed in the U.S. Silver Market this year.  Please look for my article, Something Broke In The U.S. Silver Market This Year to be published tomorrow.

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10 Comments on "BREAKING NEWS: U.S. Silver Production Plunges"

  1. hello Steve. thank you for your work.
    i was looking for some old article about silver and i find this one from golden sextant a year 2004 SilverCommentary.html targeting gold cabal with silver bullets and the autor put a link http://eml.berkeley.edu//~obstfeld/ftp/currency_crises/cc.html to essay from professor Maurice Obstfeld about identified T* as the date when the price fixing scheme would meet its inevitable demise. but is really hard to understand that formulas. can you put it in a little more simple english.
    greeting Joni

  2. Seems everyones friend, the Chinese are amassing large quantities of silver as well as gold and other base metals, not only in vaults and warehouses but the in ground future supply in all parts of the globe. After the supply pinch this stuff will be “whatever the traffic will bear” Stack, be patient and trust that your reasons for purchasing PMs was sound then and still is. Think of it as set it and forget it, at least till the scheme that is our financial system implodes as it must.

  3. About time, some of these leveraged up wing nuts finally walking away from onerous debt, said it before, while leveraged up producers keep supplying this market, the fed will continue with this bulls##t. Psychological play my ass…it’s always about “the metal” with these assholes.

  4. Steve,

    I am such a neophyte in the machinations of the paper PM markets/world that I have been unable to discover how many of any metals contracts result in delivery.

    Do you, or anyone else for that matter, know how to find out how many silver paper contracts each month result in physical delivery?

    I would think that it would be very interesting to see that data history in relation to a number of other factors and even more interesting to see how it changes going forward as time progresses.

    Thanks,

    SteveW

    • SteveW,

      If you want the answer to your question and to closely follow the COMEX, subscribe to Ed Steer’s newsletter. He covers the daily machinations. As a paid subscriber I’m sure you can ask questions to him directly. I used to read it and have asked him Q’s.
      http://www.edsteergoldandsilver.com/

  5. Hello, Steve… Am I correct in my reading of your today’s article? Year 2015 through September U.S. silver production was down 41mt, and 20.4mt of that is just from September? Meaning that 20.6 tons of difference came from January through August? Please advise / clarify. This seems like too much of a difference. Perhaps there is one major mine that shut down on August 31st? Thanks. Charley Z

    • CharleyZ,

      According to the data… yes. However, I have seen revisions made by the USGS Silver Specialist who sent me the excel tables before they were to be published next week for the public. It seems as if the last 3-4 months in 2014 were revised higher, but the overall figure for 2014 doesn’t seem to jive with these new revisions. Seems as if the total production for 2014 should be higher than what he has on the excel.

      When I asked Mr. George, the USGS silver specialist about this huge decline… he said that he didn’t think it would be revised all the much higher.

      So… all I can do is report what I find. Be interesting to see what the next few months show.

      steve

    • I do not think the production fall will lead to any global shortgage but it is probably one of the few positive things with indian purchases that has happened in silver for many years…

  6. whew..
    bet the folks who bought silver at $49 are finally breathing a collective sigh of relief..
    and will finally get their 1st good nights sleep since 2011 knowing silver production has slowed down some…not..”not”…. when market manipulation was made legal for the Zionists banksters by Reagan in 1987
    trying to think of ways to break the sheer disappointment that the never ending manipulation in the silver price is bringing, and continues to bring..[ although great prices for continued stacking,but unfortunately none of us silver stackers is getting any younger waiting for $5,000 an oz silver, so we can buy that condo or house in Acapulco next to Jeff [Berwick]..drove past his place everyday when i went down there for vacation[before he lived there.. and therefore know just where it is by looking at the bay out his back window when he does interviews ]and he lives in a very nice area atop a well known hill.a few miles from the Bay.
    some parts..most parts of Acapulco actually are ghetto conditions or worse,but the people are very nice and seem very happy[just as they do in other parts of MEXICO I’ve visited]..and THAT is worth more than ANY mansion ANY day..once you go 2 blocks off the main drag in Acapulco, things look very different than looking at the multi-million dollar hotels right on the beach..you have open air markets where animals are all slaughtered right there..gosh it smells goooood as the animals organs sit in the 105 degree sun..not…
    .the smell was so putrid, i didn’t feel all that great [to say the least,]but at least the food and animals were organic,and the beer was cheap and cold..when you go to a Acapulco nightclub you must have a date to get in,and the waitress or waiter[if you can find one] don’t bring you drinks,THEY BRING A FULL BOTTLE. A FIFTH what they do bring you are juices,coke,or Sprite to chase shots.[at Baby o’s anyway,one of the best nightclubs in the world].and the party never ends as they make you a part of the party
    ,and even worse about the falling price of silver….
    that special young laddie patiently waiting in Columbia,or,Cancun, or maybe Acapulco,or even possibly Rio, for that once young,multi millionaire silver investor from Ohio, to begin a family with,
    are beginning to head back home [after waiting 10 years.. they aren’t getting any younger either]..luckily i purchased 98% of my silver early on[but that matters little or none now],paying between $9 and $12 and as high as $14 an oz. for my ASE’ monster box’s.. my last purchase before the run to $49 was 200 ASE’s at $17 and I was worried i paid too much..then we hit $49 and I thought buying 200 at $17 was a gift from the almighty..ha ha ha in 2009 2 ho ho ho in 2011 2 hmm hmm hmm in 2013 2..ugh ugh ugh in November 2015 2 ah ah ah on December 1st 2015 2 WTF!!!??? on December 17,2015
    and to sum up the last year? well..
    let’s see.. will call it the lost year..kinda like the lost decade in Japan..no..
    actually the last 7 years [in precious metals] can be described in 2 simple words
    they sucked..

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