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.
While the COMEX silver price remains in the $17 area, we’ve seen demand surge, supply drop, and premiums on physical silver rise.
And when you look at the stunning amounts of silver that are reportedly being added to the silver trusts like SLV, some of the numbers just don’t add up.
Which we dig into in tonight’s video, so click to watch it now!
To make matters worse for the silver supply, the impact of the global contagion will likely shrink production by another 30-50 Moz. So, there is an excellent chance that world silver mine supply falls below 800 Moz, to 785-795 Moz for 2020. Hell, it could be even lower if the situation continues to get worse in the second half of 2020.
The overwhelming majority of investors have no idea how undervalued silver is as an asset. With falling supply and surging physical investment demand in…
Silver just topped out at the resistance at a line of peaks and looks set to react back at least to the support shown on the 13-month chart, and could easily drop further if that fails.
The Silver/Gold Ratio (SGR), a reflationary risk ‘on’ indicator has hit our upside target, which we have tracked in NFTRH updates over the last few weeks using the yellow box highlighting an area near the down-trending 200 day moving average that would at least temporarily halt the party. The SGR is pausing and pulling back a bit here. All normal so far.
With the way the silver price has been suppressed, and then Wall Street has just continued to pour leverage on top of that, it’s almost guaranteed that when the silver price finally begins to move, it’s going to move quickly.
