Global Silver Production Up By 4% In 2014

Global production of silver might have peaked in 2014, according to precious metals specialist Metals Focus. The company is renowned for its analysis of and research into precious metals reserves and demand. In the company’s latest newsletter, some insight was given into the global production of silver.

Just as in the case of gold, the weak silver price is starting to have its effect on global production. Metals Focus sees the production of precious metals moving sideways after 7 years of strong growth. The company underlines that new decisions to produce in this sector are taken swiftly when prices are high. It could take a few years, however, before a new mining company is ready to produce and by that time the sector might have already drastically changed.

Less Silver Production

The price of silver has fallen by about 65 percent in the last three years after a peak in 2011, which is why many silver producers are now stuck with a cost structure that is equal to the price of silver or higher. Without an increase in the price of the white precious metal in sight, it seems very logical that projects will be put on hold and that less silver will be produced. Even more, it is already happening.

Metal Focus calculated that last year 3.8 percent more silver was produced than the year before, which is a new record. For the coming year the company expects the price of silver to be mostly dependent on the price of gold. If gold will have a good year, silver will too (and maybe even a better one). If gold drops, however, silver investors will have to hold on to their socks.