For years, silver analysts talked about how there was an imbalance between how much paper silver there is, and how much physical silver there is. But that it would go on until enough people demanded their metal.
With Mexico finally releasing its mine supply data for April, the top two silver producers saw their combined silver output decline by 53%. To give you an idea of the amount of lost silver mine supply from Mexico and Peru, it was more than all the global gold production that month. Actually, it was 1.5 months worth of world gold mine output.
Pay Attention To The King Base Metal Price… COPPER
The indicator that reveals the health of the real economy is the COPPER price. Copper also closed at a significant technical level on the last trading day of June. Copper has been trading below the descending line (DASHED BLUE LINE) since the end of 2017. If copper does not close above this level, it could continue to be weaker for the remainder of the year.
The volatility in the silver market increased this week. With the chart of the last few days looking incredibly reminiscent of what we saw in the gold market on March 23-24 when several market makers got blown out.
Although silver has picked up significantly since its March low it has greatly underperformed gold over the past 2 years, but this is normal during the earliest stages of a major sector bullmarket when gold is favored over silver. On its 20-year chart we can see that silver remains stuck within a giant base pattern that started to form as far back as 2013. This chart makes clear that once gold breaks out to new highs against the dollar, then silver should break out of this base to enter a…
The latest SLV and ETF silver data is out, and once again, there were significant new (alleged) inflows into the trusts.
What’s further interesting, is that this is happening at a time when supply is down, and is expected to be down going forward. Which makes it seem somewhat counterintuitive that the silver price has dropped at the same time.
With the data now finally out, Peru’s silver mine production collapsed in April. Due to the shutdown of a large portion of Peru’s mining industry, as a result of the global contagion, the impact on the world’s second-largest silver supply was enormous. While I had mentioned in previous articles that I expected to see silver production from Mexico and Peru to decline significantly, I’m amazed actually to see the real numbers.