World’s Largest Silver Producer Down A Stunning 12%

The World’s largest silver producer saw its production decline significantly in April.  According to Mexico’s INEGI – National Institute of Statistics and Geography, Mexico’s silver production dropped a stunning 12% in April compared to the same month last year.

Looking at the chart below, we can see Mexico’s silver production declined 58 metric tons (mt), from 484 in April last year down to 426 metric tons in 2015:

Meixico Silver Production April 2014 vs 2015

That’s a large decline in just one month.  Mexico’s total silver production for the first four months of 2015 is down 5% (92 mt) compared to last year.  Here is the data:

Jan-Apr 2014 = 1,893 mt

Jan-Apr 2015 = 1,801 mt.

This is the actually data released by Mexico’s INEGI:

Mexico INEGI April Production

The table shows silver production in Mexico declined the most in the larger regions such as, Zacatecas, Chihuahau, Durango and Sonara.  Two of Mexico’s largest silver producing mines are located in Zacatecas… Fresnillo PLC’s Fresnillo Mine and GoldCrop’s Penasquito Mine.

Falling Mexican silver production could cause more stress on an already high-demand silver market this year.  With India importing record silver, including elevated imports into the United States, we could see real shortages by the second half of the year if investment demand surges due to a financial contagion stemming from a Greek Exit of the European Union.

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31 Comments on "World’s Largest Silver Producer Down A Stunning 12%"

  1. Are there any simple explanations for the decline?

    • Great.. a 2nd Markus. One with terrible knowledge of the English language too. I should clear up that that’s not me (the Markus from Austria who has been posting here since the inception of this blog).

    • Markus,

      Mexico’s INEGI monthly updates are very short (totally in Spanish) with very little information to either increases or decreases in production. I will see if I can find any data on this.


    • High grading most likely. Low grade ore is not worth mining and processing at these suppressed prices so miners focus on mining only ore with the highest grades at lower tonnage..

  2. It doesn’t really matter because you can buy paper silver. Although now might not be a good time, because paper silver has gone down a lot recently.

  3. “Falling Mexican silver production could cause more stress on an already high-demand silver market this year. With India importing record silver, including elevated imports into the United States, we could see real shortages by the second half of the year if investment demand surges due to a financial contagion stemming from a Greek Exit of the European Union.”

    I don’t think The powers that be will allow Greece to exit the EU anymore than the CFTC will enforce their own rules on the COMEX. Every central bank and government will hold as much iron grip as they can until something breaks. Everything is being done to dissuade people from buying PM’s. For Americans, with the exception of 1% to 2%, it is working. And yes many are struggling to pay their bills, or they are on one or more forms of welfare [closing on 50% of Americans]. But a new fireworks superstores opened near me just in time for the 4th of July. A LOT of people are walking out after spending many hundreds on fireworks. Maybe five buyers in the July 4th week have any gold or silver?

  4. Perhaps the declines for the 1st 4 mo. period YOY and April are due to the fact the low-hanging fruit is exhausted. Demand has increased due to pricing, etc. and now the miners are dealing with lower-graded ore deposits. The prices will still stay in a tight range or drift lower thanks to the riggers. I’ll be getting more soon, but I’d guess if the price went to $5/oz. few will consider it! IMHO the Greece issue is a window to the US so anyone with a pulse will prep now. Happy 4th everyone!

    • Mark,

      Actually Fresnillo (large Mexican silver producer) plans to ramp up their production from 40 million oz (Moz) currently, to 65 Moz by 2018. They have several mines coming online. One should come online at the end of this year, and be in full production next year. It’s something like 10-12 Moz per year.

      That being said, even if the world brought on say another 100 Moz of silver (I doubt it), it’s still peanuts when we figure the population has invested in over $105 trillion in soon to be worthless Global Conventional Paper Assets.


      • Despite all the negative factors such as declining yields and low silver prices, production will increase for many years to come…

  5. It would be nice to see how much other countries outputs have changed. Maybe this decline is more of a measure of how much is no longer being sold at the phoney price?

    • Mark,

      I will do an update. Peru had increased production for the first 2-3 months, but it looks like it declined in April. I need to see how the top 10 have done so far this year.


  6. More demand, less supply. I’ll wait for .888 silver. 🙂

    • Joe Lindell | July 3, 2015 at 8:17 pm |

      And, adding to Mexico’s woes is the fact that their production costs have an
      added 7% government tax. Their cost of production has risen by two
      factors: Less production for the same costs to produce and taxation on
      that production. This is good news going forward for silver bulls,

      • OutLookingIn | July 3, 2015 at 10:02 pm |

        Why would it not be “good” news for silver bulls?
        Think of supply/demand. Less supply & more demand = increased scramble for what remains.
        Either the price breaks upward or the premiums asked start heading higher than they are now.
        This fall off in silver production is indeed bullish for silver bulls.
        Hopefully soon, we will find out who’s been swimming naked in the COMEX silver futures pool, when the tide goes out for good.

        • “Hopefully soon, we will find out who’s been swimming naked in the COMEX silver futures pool, when the tide goes out for good.”

          It is well documented on a daily basis who the big silver short contract owners are.

          Fundamentals can set up in an ever-more-favorable manner as has been happening for years, and that alone won’t matter to price, as physical price is not determined by physical supply/demand. The only thing bullish for silver bulls [or bugs] is when the COMEX “machinery” breaks.

          • However OutLookingIn is right in that, before the COMEX breaks, there could be higher premiums on silver caused by shortages large enough to cause that but not large enough to cause Comex default. We’ve been in that in-between realm briefly in the past.

  7. “I use this bird’s-eye approach when I create my easy to understand charts. The Silver Chart Report is a collection of my top silver charts from articles published over the past six years, and includes in-depth, never-before-seen charts and content that indicate that “SILVER IS ON THE RISE” from a high of $49 in 2012 down to $15.50 a DECLINE of nearly $35[ in spot crappy worthless paper silver the last 3 years]
    unfortunately for us stackers retailers use this totally fictional price to gage the price of both silver and gold spot price for the real,physical bullion..fortunately purchased mine when it was between $9 and $14 and never paid more than $15 for a ASE..have been buying all buffaloes since price dropped under $20, but never..ever.. dreamed it would go back to this ridiculously absurd price..still believe silver is W/O a doubt THE investment of the 21st century at these prices..
    ,& its even a great deal at $49 if the futures market weren’t so rigged..
    you would most likely be looking at $125 silver, & very possibly more than that..
    unfortunately [again] silver..PAPER silver price has been getting smashed DOWN ever since its 2012 high of $49, & now sits at around $15.50 as y’all well know,& looks to fall even further with this record naked bull sheet short position by the legal market riggers at the PPT,
    who do the bankster’s dirty work for them.
    .could it be,
    someone with bad intent, possibly spiked your “peace-pipe” with some funny mining dust Saint Steve? just don’t see “silver on the rise” in any way,shape,or form..
    not in the land of the enslaved,
    & home of the coward couch potato..not in America anyway.
    anyway everyone have a great July 3rd,4th 5th & 6th like the rest of the world,as the TPP nullified our constitution & made oh Bama a real dick..
    ..tator, & celebrating the 4th is now just a reason to get a x-tra day off work,drink beer,& cook out,& watch colorful explosions in the sky..this may well be the last one too..its just another Saturday here, as indeed it should be..celebrating the 4th & waving flags & watching parades is purely an act of denial..the flag is soaked with the still wet blood of soo many innocent people all around the world,
    it physically sickens me..
    think about all the innocents we’ve slaughtered around the world because of lies by the lapdog presstitute media told to lie & lie & lie & lie for the Zionist’s new world order/L on earth empire..Christian America AND her beloved constitution a most high & most magnificent doctrine for a civilized society to live many innocent young lives died for it now so simply shredded ,burned,& thrown in the garbage heap of history..
    its more than enough to make a grown man cry,
    & surely the founders would be besides themselves in a justified rage,IF they were alive..more enraged because the American people did next to nothing to stop the death of this absolutely brilliant ,Godly, & wonderfully incredible document, right along & beside the just as incredible ” Bill of Rights” together the best treatise for a society of civilized people to live in harmoney with their neighbors by & prosper in peace by & most importantly,it gave the common man for really the very first time, the ability to own private property.. & in our comfortable cowardness, we let a small group of greedy,corrupt ,narcissistic &,Satanic Zionist banksters that never have enough,
    spit & shitz all over it, shred it,burn it,& throw it in the trash-heap of history.corrupt judges all across America,bought & paid for lapdogs of the establishment wouldn’t even allow the constitution in their courtrooms for the last 81 years.,since the official bankruptcy of the USA corporation in 1934,& yes..we are STILL in bankruptcy,
    & THAT is how these corrupt judges got away with not following the Constitution for so long..
    but now the horrific TPP [no where near a strong enough word] effectively ends the constitution & the protection it provided[what little left anyway] for we the people & the limit on government it provided[what little left anyway],
    are now gone for good,
    & once a great piece of history..the GREATEST written piece of history..ever.. is gone..vamoose.. it’s gone..

    • I couldn’t agree with you more. This experiment in freedom, liberty and justice has been totally subverted. With the supreme court decisions last week, that date could be stamped into the tombstone for the official death of the republic.

  8. Hi Steve,
    tiny mistake: Greece is about to leave the euro-zone which refers only to the currency. It will remain in the European Union even if it abandons the Euro.
    Feel free to delete this comment.


    • Florian,

      Thanks for the correction. Some times when I talk or write, my brain says one thing and my mouth or hand says another. It’s the Archie Bunker syndrome…LOL. You are correct. However, if Greece did chose the option to take Putin’s offer, I think that would be the end of the European Union. European countries would be better off exiting the European Union and setting up trade with Russia.

      This would get the USA BIG BROTHER off their backs via the collapse of NATO. I totally agree with Paul Craig Roberts on this.


  9. Steve have you ever done an article of the EROI of hydrogen energy for cars?

    • barry,

      No, but we must remember hydrogen is not an ENERGY SOURCE, its an ENERGY CARRIER. Diesel refined from oil is a primary energy source used to run trucks and automobiles. To make hydrogen or even the new Audi e-Diesel takes a primary energy source such as electricity or etc. You need an energy source to make the hydrogen. This is very expensive, thus making the EROI very low…. uneconomic. Which is precisely why we haven’t already done it.

      What we need are more HIGH EROI PRIMARY ENERGY SOURCES (which are becoming in short supply), not LOW EROI ENERGY CARRIERS. Does that make sense?


      • I have read that they expect to get hydrogen at about 75 cents a litre at the pump. Which would indicate that the EROI is higher than gasoline. That is not counting the trillions of dollars in infrastructure spending of course. And that renewables could be used in it’s production.

        One more thing, there has been a lot of talk about solar lately. Do you think that there is enough silver for the world to move to solar energy?

        • There isn’t REMOTELY enough silver to make solar panels to supply even 15% of the world’s current electricity consumption [not counting hydroelectric].

          EROI of hydrogen production for vehicles is not cost-effective compared to diesel or gasoline…not close. What is written [that the public sees] about the promise of hydrogen, solar, wind, and other alternates is not by serious engineers and scientists, but by PR, propagandists, or ideologues.

        • “I have read that they expect to get hydrogen at about 75 cents a litre at the pump. Which would indicate that the EROI is higher than gasoline.”

          Barry IF that price ever appeared “at the pump”, it would probably be due to an industry being heavily subsidized, not because hydrogen could be profitably produced and sold at that price. The same BS has been done to make solar farms and wind farms look good. In time they all fail economically. Shale would be a total failure without near-zero interest loans, and a lot of debt.

          If the cost of producing something exceeds the cost it can be sold for, the difference won’t be made up in higher volume of sales. The gap is made up by increasing debt.

      • Karl Keefer | July 5, 2015 at 6:46 pm |

        Silver high-grading may be running out. There aren’t unlimited veins of the good stuff. Even the good stuff needs people, machines and fuel to get it and process it. I wonder if the high-graded ores are even nominally profitable at current metal prices and current (low) fuel prices. Woe to those mines that run out of the good stuff, or face increasing fuel costs, without a significant increase in metal prices.

        Peak everything, especially Peak People. Not necessarily the number of people, but Peak People Quality resulting in folks born between 1935 and 1965 in the United States. Lots of nice high-quality calories and high-energy input systems to give year-around good food to pretty-regular folks (not just the top 1%) resulted in the best-looking crop of young people ever anywhere born between 1955 and 1975 in the USA/Canada (2nd gen born in good times). This may never happen again on such a scale. Intelligence is where the decline will happen first, then height.

        Hydrogen as a mobile “fuel” for small vehicles ( not larger than a F-150 P-U) is useful if it can be a way to export POLLUTION to a foreign country or a “National Sacrifice Zone”. Hydrogen cars may become almost mandatory in the Los Angeles basin since gasoline vehicles (let alone the cleanest insanely-expensive German BlueTec Diesel) can not get much less polluting than they are now. CARB is grasping at straws like fuel evaporation from dried-out filler cap gaskets on 4-stroke portable gasoline generators and VOC’s in canned spray paint (making spray paint not dry for 2 months). Look for huge bans and surcharges on new and re-registered gasoline anything. Hydrogen and battery systems WILL appear when the alternative is the sweat of human labor or animal power, not ICE engines fueled by dino-petroleum (especially comical when a person considers that Bakersfield is sitting on a huge pool of underground liquid hydrocarbons).

        If/when the current State of Mexico collapses financially or by Cartel military action, building a few nuclear power plants there (off of wind paths over Los Angeles or Phoenix) would allow a pipeline of hydrogen and some high-tension lines into San Diego and Los Angeles. They know what to do with a bunch of Gigagawatts of base-load capacity: air conditioning and sea water desalinization!

        Bicycles fix this problem. A few ounces of lube a year, and a few tires. Be strong, ride hard. Save price of fuel insurance licensing and car payments in a few nice coins. I roughly figure that I’m stacking $150 a week by not driving, even with the higher food cost. That’s six or seven Silver Eagles a week, or a nice circulated fractional gold coin after a couple weeks. Even better, I’m stronger and no longer a fatty. Rich, smart, AND good looking: Whoo hoo!

      • Robert Happek | July 6, 2015 at 9:06 am |

        If hydrogen is not an energy source, then oil is not an energy source either. As a matter of fact, there is only one primary energy source and that is the energy contained in the sun radiation. All other forms of energy (except for nuclear energy) are only energy carriers in the sense that these (oil, hydrogen, electricity etc) carry stored solar energy. Indeed, without the sun, there would be no life on this planet.

        • Robert,

          LOL… you are too much. Always a comment to refute. God bless ya.


        • Karl Keefer | July 6, 2015 at 4:03 pm |

          Solar power is so diffuse as to be useless for propulsion purposes using conventional-weight/size autos on the current road infrastructure. Solar power IS useless for industrial extraction purposes.

          THE way to use solar power to make industrial quantities of electrical power is to use a planetary-sized evaporator, condense water against mountain ranges, capture the water behind dams to make a high head to spin turbines. Oh, yeah, 1930’s tech. US style building cost hundreds of lives, no-oil Chinese-style would cost thousands of lives.

          The diffuseness of solar energy makes it as useless to cities as it is to factories. The more-dense the city, the less practical solar energy is inside the footprint of the city. Of course, if you colonize the neighboring regions to site solar panels and HV lines, perhaps you can run your city-state on solar, if the last oil is used for war to impose the New Solar Order.

          The good news is that solar thermal and solar pv work fine where land is cheap and people are scarce. Wyoming! It will save you a bunch of fuel and firewood, with earth sheltered insulated dwellings. A few hundred Watts of PV and 300# of batteries will make plenty of dc for running fans, refrigeration, comm, lights in a small efficient family dwelling. The people still need to pay for the power in-advance unless they will accept debt for convenience/comfortand the slavery that comes with it.

          NYC density is a death trap, disaster for 100miles every direction except out to sea, and no-good all the way to the Mississippi. Solar power will not be an issue with hungry armed zombies wanting your brains.

          Oil is a “source” of energy in that it takes less than one unit of oil to get one unit of oil. It used to be 1:100 (the good old daze!), now 1:3 for shale or tar sands. Hydroelectric is estimated to be 1:30, with massive expensive front-end costs. Next-gen nuclear will need similar huge inputs to make nice civilization-supporting 1:30+ clean long-term electricity without war. Or, we can do war for the last barrels of oil, wherever it might be. USAF Global Dominance!

  10. silverfreaky | July 6, 2015 at 7:03 am |

    Even the possible greek exit can push the PM.What a money burner.

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