Dan and Vargas, thanks for your updates and analysis. It's good to have the two of you back as frequent posters. I just came across the following Reuters story:
Silver output seen higher if mkt stays in deficit
ACAPULCO, Mexico, Oct 15 - World silver
production will increase if the current demand-supply deficit
continues and provokes an upswing in prices, the chairman and
CEO of one of Mexico's top mining companies said here
Wednesday.
Antonio Madero Bracho told the World Mining Congress in his
keynote speech that because silver stocks were much lower than
gold stocks on a worldwide basis, non-associated silver output
could become a new trend if prices spiked.
"Any upswing in prices could, accompanied with the current
deficit situation, result in new non-associated silver
production," Madero Bracho said. He is the head of Mexico's
Sanluis Corporacion .
Madero Bracho estimted that up to 80 percent of silver
production in the world was currently by-product of copper,
zinc and lead mining processes, giving "inelastic" production
tendancies.
But, he said, because consumption has doubled in the last
20 years and stands at around 700 million ounces this year, it
will make an eighth straight deficit year of around 200 million
ounces, almost 50 percent of world output. He gave no
indication of Sanluis target prices. |
