U.S. Geological Survey reported Tuesday that U.S. silver production dropped 14%

RENO (MINEWEB) - UPDATED: The U.S. Geological Survey reported Tuesday that U.S. silver production dropped 14% in May.
U.S. mines produced 84,900 kilograms of silver (2,729,600 troy ounces) in May 2012, a 14% drop from the 99,300 kg (3,192,570 ounces) of silver output reported during May 2011. The average daily production rate in May of this year was 2,740 kg (88,903 oz.).
The average Handy and Harman silver price for May was $29.79 per ounce, a 22% drop from the previous year. The average London spot price for May was $28.67 per ounce.
Coeur d'Alene Mines produced 151 metric tons in the first quarter of 2012, up 19% from the same period a year. Hecla Mining's first quarter silver production of 41 tonnes plunged 46% from the first quarter of last year. U.S. Silver Corp. produced 17 tonnes of silver during the same period, an 11% increase compared with the 15 tonnes of silver mined in the first quarter of 2011.
Domestic silver production for the period from January to May of this year totaled 411,000 kg (13,214,000 oz.).
U.S. Geological Survey figures show the United States imported 2.4 million kg (77,161,800 oz.) of silver with a value of $2.58 billion from January to May of this year. The U.S. imported silver bullion, silver dore, silver ores and concentrates, and silver ash and residues from Argentina, Belgium, Canada, Chile, Columbia, the Dominican Republic, Ecuador, Italy, Jamaica, Mexico, Morocco, Nicaragua, Panama and Peru.
http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=157430&sn=Detail

 

Log in or Sign up to hide this ad.

Interesting... This could be construed many different ways.

 

And undoubtedly will be.

 

Considering we are not one of the largest silver miners, and haven't been for a long time due to our environmental regulations and mass protests of any new mine, its not very surprising. Silver worldwide is still the highest level of mining in history.

I just read an article Friday about what has changed in silver is the fact "investment demand" is up over 500% in the last few years. Investors are what is changing this market, not industrial fundamentals.

 

It is kind of surprising to me, as silver isn't usually mined for the silver, but is a by-product of gold and copper mining, which is still a huge industry, at least here in the Southwest. But what is surprising to me is that as destructive as say a copper mine is with it's open pit layout that resembles a blown-out volcano, it pales in comparison to the average coal mine, which if you've ever been to West Virginia, you'd know they literally level entire mountains and re-route streams that they've polluted with sulfuric acid. Yet we are one of the largest producers of coal world-wide, just behind China, and the extent of those mining operations are growing at over 350% yearly. I think our environmental concerns are biased in that we only care about it up to the point that our energy costs might go up 12 cents per KWH.
Guy

 

I agree that "investors" are what is changing this market. US Mint last year made 40,000,000+ ASE's. Right now its only 5% or less of the US population that buys silver or PM's in general. If or when the economy goes more South and the masses ever start to buy OMG it would be crazy?

 

I agree that COULD happen, what also COULD happen is an investment more enticing comes along and these buyers of PM the last few years dump all of these massive quantities of conis back on the market. What do you think would happen to ASE premiums if 20 million of them came onto the market in a short period? What would happen to the price of all silver?

Just saying such a scenario cuts both ways potentially. I am never, ever a fan of "what if the masses start buying X?" If people have not bought silver before, what makes us so confident they EVER wish to buy PM? We here all love PM, (I am a huge lover of silver myself), but the fact is most humans on earth have absolutely no desire to own it, short of its value they can sell it for and buy something else.

 

Personally, if 20,000,000 were dumped on the market and prices when down to $8-15 for ASE's, I would buy more. Swings in the PM's markets do not bother me as they have never been worth nothing like stocks and fiat currencies. I buy for insurance not investment anyways.

 

True, but what about humans not on earth?

 

All six of them?