Global silver mine production in 2016 declined by 0.6% in 2016 – recording its first decline since 2002, according to the ‘World Silver Survey’ compiled by GFMS Thomson Reuters on behalf of the Silver Institute. The decline is “largely the result of lower by-product output from the lead/zinc and gold sectors”. The annual average silver price posted a 9.3% increase in 2016, its first rise since 2011.
The report says that “Coupled with less silver scrap supply to the market, which posted its lowest level since 1996, as well as a contraction in producer hedging, total silver supply decreased by 32.6 million ounces (Moz) in 2016”.
“On a regional basis, Mexico registered the largest drop in production last year, followed by Australia and Argentina, yet those losses were partially offset by gains in Central and South America and Asia”, says the report. Mexico was again the world’s largest silver producing country, followed by Peru, China, Chile and Russia.
According to the report, “Silver coin and medals fabrication fell by 9% in 2016, from its record high in 2015, to 123.2 Moz. Silver bar investment fell by 46%, mainly the result of lackluster demand in India”.
