In year 2016, it was for the very first time in 14 years that global silver production had dropped. And, yet again in 2017 silver mine production stalled by 4.1% to 26,502 MT (metric tonnes). GFMS team of full-time research analysts from Silver Institute organization release World Silver Survey annually, to estimate the status of international silver market.
The downfall has resulted from years of reduction in their capital expenditure, along with supply disruptions, particularly in the region of Americas. 2% of the physical demand has reduced due to 27% drop in coin and bar demand, despite a robust growth in photovoltaic sector and industrial demand, and international jewelry and silverware markets. Last year saw interest of investors wane from commodities like precious metals. They are focussing more on new elements like crypto-currencies. In terms of coins, they opted for old ones which hindered the sales of new coins.
As per the list released, Mexico was again dominant in terms of production and emerged as world’s top silver-producing country. The mine supply from the country rose by 314 MT, owing to the higher production in towns of San Julián and Peñasquito. The world’s largest primary silver producer company Fresnillo, in San Julián, was commissioned in 2016 and has contributed to majority of the growth.
On the other hand, North America, which is the largest fabrication region, saw a significant slump. The production of silver was less by 47% in 2017, and has been the lowest in ten years!
A stronger performance in comparison to last year is observed in its usage in electrical components, brazing, etc. The automotive sector also depicted a positive performance and reflected on the much need of silver.
The following countries were dominant in terms of production of silver in 2017:
|Rank||Countries||Silver Production (Tonnes/ MT)|