Top Two Silver Producers Overtaken by Polish Copper Mining Company in 2011

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Australia’s Cannington mine was the world’s largest silver producer, prior to 2011. Fresnillo PLC controls a number of both gold and silver mining operations and owns the Fresnillo mine, the world’s second largest silver producer. 2011 saw silver ore grades in both mines drop significantly, lowering their silver production by double digits.

Polish copper mining interest, KGHM Polska Miedz moved from the ninth largest world silver producer, into first place in 2011. BHP Billiton, second largest silver miner also dropped in production, and was also overtaken by the Polish company. The drop in production at the Cannington mine was to blame for Billiton’s decreased output.

Future precious metals output by the top silver producers will likely be impacted by dropping petroleum fuel exports and fluctuating diesel prices. Diesel is the main fuel that powers mine production. All top producing silver mines expect to increase diesel consumption. Tonnage of processed ore has already declined in relation to the amount of diesel fuel consumed.

http://www.silverseek.com/article/critical-factors-will-impact-silver

Businesses and Consumers Seize Opportunities in Silver Scrap Recycling

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According to the most recent edition of the Thomason Reuters GFMS World Silver Survey, increases in the scrap silver supply have been noted in both 2010 and 2011. The report further indicates that the silver supply produced in 2011 contained almost twenty-five percent scrap silver.

Poor global economic conditions likely contributed to the rise in silver scrap, as individuals sold not only personal property made from silver, but also purchased used silver items to resell for their valuable silver content.

Industrial silver recycling, although not profitable for individual consumers, is, nonetheless a large silver scrap supply contributor. The supply of scrap silver from electronics, dental alloys and industrial catalytic reactions is bolstered by new, stricter regulatory legislation over companies producing precious metals-containing, hazardous waste. Precious metals recycling service companies take on the waste liabilities of other companies in order to take advantage of the ability to harvest recyclable metals, including silver, platinum, gold and copper.

http://silverinvestingnews.com/11936/silver-scrap-supply-sees-further-growth-boliden-world-silver-survey-gfms.html

Is Silver Likely To Experience Extreme Valuation Increases In The Coming Years?

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As the year 2008 drew to a close, the price of silver futures plunged to new lows, falling to under ten dollars per ounce. During this brief time period, silver futures were valued at less than what it cost miners to take it out of the ground. This “reverse bubble” was created when large players, mostly financial institutions, began excessive silver short selling on the futures exchange.

Typically, the results of artificial decreases in asset prices are followed by equally extreme upside motion. In the case of 2008 silver, its spot price boomeranged from less than $9 per ounce in November of that year to a new high of nearly $50 by April 2011. May 2011 saw silver plummet to the low $30s after gaining more than 450%, during the previous 29-month long rally.

Large players, such as JP Morgan are, again beginning to sell silver short on the COMEX. Could this mean another jump in silver values? If this were to take place, at silver’s current price, the white metal could easily exceed $150 by 2014.

http://www.thestreet.com/story/11508655/1/the-silver-reverse-bubble-of-2012.html

Historic 2011 Average Annual Silver Price Marks Volatile 2011

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The average 2011 silver price was $35.12, a result of increased investor enthusiasm and higher fabrication demand. Silver’s record price reflected fabrication demand at the second greatest level since the turn of the millennium. The 2011 record was more than twice the average 2009 price. Worldwide investment in silver also reached record levels at 282.2 million ounces.

A sixty percent gain in Chinese demand for bullion coins helped propel coin sales to a higher record than in 2010, while global fabrication of medals and coins increased nearly twenty percent. Investment in silver bars grew nearly seventy percent.

Higher silver mining labor costs, and lower above ground silver supplies also added to higher silver valuations, although the supply of scrap silver rose, due to increased recycling of silverware and jewelry. Silver demand declined in photography, medicine, jewelry and silverware, due to difficult global economic conditions.

Silver demand was significantly stronger in the first three quarters of 2011, but fell back during the fourth quarter as Europe began to experience greater systemic economic difficulties.

http://www.marketwire.com/press-release/silvers-2011-annual-average-price-posts-all-time-record-at3512-1646192.htm

Silver Market Manipulation: The Hunt Brothers Story, Part II

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As the Hunt brothers continued to take deliveries of silver, they generated billions of dollars in silver demand which inflated silver’s value to more than fifty dollars per ounce. The siblings even borrowed against their solid reputation to take out more futures, at lower interest rates than most investors could obtain. Simultaneously, they were able to convince others to invest in preparation for the coming devaluation of the dollar.

As the brother’s short silver position ballooned to four and one-half billion, others wanting to take advantage of high silver prices raced to sell their physical silver assets. By this time, less than one-third of the silver market remained beyond the Hunt’s control.

The Federal Reserve, seeing what was happening, began to discourage banks from speculative lending. Silver began to drop as fear that the Hunts wouldn’t be able to meet margin calls began to spread. The first missed margin call came on March 27, 1980. The Hunt’s retained much of their wealth, even after being fined and forced into bankruptcy to satisfy creditors.

http://investopedia.com/articles/optioninvestor/09/silver-thursday-hunt-brothers.asp#axzz1tBzokqc1