The price of silver has decreased by nearly one-half since its record high of nearly $50 in early 2011. The effects of a wavering world economy are making their way down to small and medium sized silver producers. For many of these companies, compromises in capital are necessary to continue financing their operations.
Factors affecting silver mining interests are tangible and varied, but all relate to the continuing global economic crisis. European fiscal issues are helping to depress all commodities prices. As the dollar strengthens, many are investing while precious metals valuations stagnate. US Treasuries, although producing the lowest yields in history seem to be a reasonable refuge.
Future silver growth seems almost guaranteed as industrial demand continues to climb. Silver is much more easily and inexpensively recycled than gold. With European financial institutions struggling, a major source of capital for mining is diminished. Silver producers fear that production halts could occur, as plummeting silver market prices make mining less profitable.
