I have just read up on this british shipwreck and thought that this may drastically reduce the value of silver? What is your opinion? Here is a link to the story: http://www.telegraph.co.uk/news/wor...n-silver-on-board-discovered-in-Atlantic.html
Yeah.. I just read about that as well. 240 tons of silver is pretty serious. Not sure how that would affect the market. It definitely wouldn't be immediate though. hank
I just did a little web research (no idea if these numbers are accurate, but this is what the web reference I found said). About 40 million pounds of silver is mined in a typical year. If the shipwreck numbers are correct ... 240 tons = 5 million pounds. So this find adds about 10% to the total that is mined for just 1 year. Add to the fact that the recovery will probably be slow due to the depth of the wreck, I think this will have a neglibilble effect on the price of silver.
Its way too small to affect global prices. Higher prices of silver prompting mine life extensions, mine expansions, and new mine openings is what will affect supply.
You're right lkeigwin! ... My eyes were too blurry to read my windows calculator this morning (needed coffee!) 500,000 lbs (not 5 million pounds) ... so instead of adding 10% to what is mined in a given year ... all that silver would add just 1% to what is normally mined in a given year. Even less of an impact
It won't have any effect on silver prices. LOL You have to realize the silver found will be collector items and not melted.
I agree it will have no impact, regardless of what is done with it. Now the price of tea, on the other hand... Lance.
:devil:I am sure someone will send what they bring up Ngc or Pcgs .and sell each coin like they did with the coins on SS Republic .It may take more time than the coins from SS Republic this ship is down in 2-3 mile of water.
I hope this helps. 240 tonnes equals 7,716,179.256 troy ounces. 1 tonne equals 1,000 kilograms equals 2,204.62262 av pounds.
Cost of recovery may actually exceed the cost to mine new silver netting little to no effect. One has to remember that the current cost of silver includes all of the paper silver on the market at any given time plus the real silver.
To a point, but in reality its physical silver. If someone wanted 200 million ounces of silver to hoard, I don't care how much paper they create the price will go up. The paper is deliverable in physical form on the market if you declare you will be taking physical delivery. Deplete the supply of physical silver on the market and prices will have to go up. I understand your point, Lindedad, but I think its only valid within a range. Chris
