More than half of the world’s future silver production is at risk when base metals prices take a big hit during the next economic crash.
While there is no guarantee what the value of gold and silver will be in the future, LOGIC suggests investors holding onto most STOCKS, BONDS and REAL ESTATE will suffer the financial enema of their life. 
So, PLACE YA BETS and let’s see who made the better investment decision when the global market finally cracks.
From SRSRocco:

The Peru Ministry of Energy and Mining just released their silver production data for February, and it was a whopper to the downside.  Actually, I was quite surprised to see how much Peru’s silver production declined versus the same month last year.  Also, Peru’s gold February production took a similar big hit.

According to the Peru Ministry of Energy and Mining data, the country’s silver production fell 12% to 323.1 metric tons (mt) this February versus 367.4 mt the same month last year:

This is a 44 mt decline in one month, nearly 1.5 million oz lost.  Here is the table from the Peru Ministry of Energy and Mining showing various metals production data for February:

Silver is shown as “PLATA” and as we see, overall silver production for JAN-FEB has declined 6.7% compared to the same period last year.  Which means, Peru’s silver production took a much larger hit in February than in January.  Furthermore, Peru’s gold production (shown as “ORO”), also declined significantly by falling 11.3% in February.

The Peru Ministry of Energy and Mining put out this brief explanation why their silver and gold production declined in February:

However, in this month precious metals slightly suffered a lower production volume gold decreased by -11.91%, while silver -11.29%. In the accumulated January, national production of these precious metals decreased by 6.81% for gold and 6.3% for silver.

In the national production of silver, the Lima region (127,157 kg fine), Ancash (126,816 kg fine) and Junín (116,473 kg fine) regions are in the top positions, associated with the polymetallic exploitation of the center of the country. Peru is the second largest silver producer in the world and boasts the largest proven and probable reserves of this precious metal in the world.

Antamina (101,824 kg Fine) in the Ancash region, followed by Uchucchacua (84,745 Kg. Finos) in Lima and Inmaculada (30,468 Kg Finos) in Ayacucho, among several others.

In the case of gold, the national production accumulated to February 2017, reached 23.8 tons fine. Its production was concentrated in the regions of La Libertad (6.4 tons) contributing the total production in 26.92%; Cajamarca cooperating with 23.32% (5.5 tons fine) and Arequipa (3.03 tons fine) contributing 12.74%. These regions accumulate 63% of the national gold production.

The decrease is explained by the lower results (-23.53%) of the main producer: Minera Yanacocha S.R.L. Whose operations in Cajamarca have been affected by an exhaustion of the reserves in the current deposits in operation.

I don’t know why the Peru Ministry of Energy and Mining’s data for gold and silver production declines are different in their explanation than what they show in the excel spreadsheets.  However, it is only off by a small percentage.  Regardless, the important part of the text above is highlighted in REDThe reason for the big decline of Peru’s gold production was due to “an exhaustion of reserves in the current deposits of operation.”  This is a KEY FACTOR that will be played-out across the world as other mines lose production due to the same situation of reserve exhaustion.

We must remember, Peru is the second largest silver producer in the world, right behind Mexico.  According to the Silver Institute’s 2016 Interim Report, Mexico’s silver production is estimated to decline to 183 Moz in 2016 (189 Moz in 2015), while Peru’s silver production increased to 141 Moz (136 Moz in 2015).

Global Future Silver Production At Risk

As the global markets finally succumb to the massive amount of debt, economic activity is going to plummet.  This will have a negative impact on most energy, metals and commodity prices.  Thus, production of base metals will decline significantly.  This will impact the production of silver the most as the majority comes as a by-product of zinc, lead and copper production.

According to the World Silver Survey, 34% of silver production came as a by-product of zinc and lead mie supply, while 22% came as a by-product of copper production.  Thus, 56% of global silver production is a result of copper, zinc and lead production:

Which means, more than half of the world’s future silver production is at risk when base metals prices take a big hit during the next economic crash.  People need to realize that using a massive amount of leveraged debt to continue economic activity is not only UNWISE, it is seriously INSANE.

While there is no guarantee what the value of gold and silver will be in the future, LOGIC suggests investors holding onto most STOCKS, BONDS and REAL ESTATE will suffer the financial enema of their life.  Again, this is all due to the disintegrating U.S. and global oil industry in the future.

So, PLACE YA BETS and let’s see who made the better investment decision when the global market finally cracks.

    • Author failed to tell you that they have been having the most rainfall, mudslides, roads out, commerce interrupted in years.  More fake news fear mongering. I own stock in a mine in the Huanoco region and the reduction in output has NOTHING to do with reserves.  We are having difficulty getting vehicles in and out, roads washed out.  Look it up.  Is this making the result fit your bias, or do you not do research?

    • Wonder “Why” the Financial Enema announcement was included with the Peru  PM’s going lower? Sorta like a Fake News headline to get your attention, I mean like screw Peru, tell me about stocks, bonds and real estate taking an enema. We don’t need NO Stinking excuses why the PM’s are hammered lately. Hope that’s the last excuse? NAAAAH!

    • @Ranger

       

      “… tell me about stocks, bonds and real estate taking an enema.”

       

      Darned if I know, Ranger.  Most of the stocks, ETFs, and REITs I’m in are doing quite well.

       

  1. Is it debt if you never plan to pay it back? All Peruvians have to do to get money is to dig it out of the ground.  It must be nice. You know what else they produce the most of don’t you?  All of the markets are rigged. That’s the premise here and a sound one imho.  So it is all by design and the markets appear to be architectural in nature.  They the bank stirs can build them higher or can pull them to what ever level at will. It’s not difficult to imagine the stock market real estate etc…tanking and PM’s going sideways or nowhere at the same time.  Is that a bullish enough statement? That’s what’s coming out a my smoke machine anyway. Catch use all later.

  2. Banksters can pump up by 900%, stocks that (based on fundamentals) should crash by 90%. The purpose of their manipulation is to transfer your wealth into their pockets. When it comes to their rigged system, the only winning move is not to play.

    When everyone is aware of this, the banksters lose their influence and wealth. So it is my intention to help everyone I can, to become aware.

  3. Stacking the shiny since the summer of 1988, a long time and a long term investmen in real money. Work your plan, plan your work. Picked some rolls of 2017 Ase’s spot plus $2.25 with cold cash. I still love the feel of the shiny phyzz. Must be in the blood..

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