Gold is mined primarily in specialized gold mines. It is getting harder and more costly to locate new gold mines. In contrast, 60% of all silver is a byproduct of base metal mines, which are abundant. Another 10% of silver is produced as a byproduct of gold mining. After having been devastated in the wake of the post-Lehman Brothers metals crash, base metals mining has made a remarkable recovery, and has ramped up again, by leaps and bounds. Silver production is up again. If base metal prices go down, again, it will take time before mines start closing again, and for silver production to fall. That means there will be a temporary end to the shortages which culminated in the recent big price rise.
Archive for November 5th, 2009
Silver Prices Are About to Fall
Posted by obront on November 5, 2009
Posted in financial | Leave a Comment »
