*Editor note: With sentiment near all-time lows for the entire bull market, we thought it apropos to bring back SRSrocco’s viral, comprehensive FUNDAMENTAL ANALYSIS on the forces that will push silver over $100/oz. 
PLEASE CHECK YOUR EMOTIONS AT THE DOOR AND REVIEW THE FUNDAMENTALS!

There are tremendous forces at work that will push silver over $100 an ounce.

According to the  2012 World Silver Survey, total global silver investment demand has risen from only 31.6 million oz in 2002 to a staggering 282.2 million oz in 2011.  As world economic fiat based monetary system continues to deteriorate, investors are taking delivery of physical silver rather than holding on paper contracts that may not be backed by any metal whatsoever.

This has created a run on the LBMA… the largest metal exchange in the worldOnce the world ‘s liquid energy supply starts its inevitable decline from its current plateau, annual silver metal production will decline as well.  There will be no silver glut and there will be no silver available when the world’s fiat monetary system finally dries up and blows away.
Get ready.  The forces for pushing silver over $100 have just begun.

silver investment demand jumpsThe world’s largest silver producer saw its production decline substantially in the first half of 2013.  Many assume this decline came from Fresnillo, which is known as the largest primary silver miner in the world.  However, it was recorded by KGHM Polska Miedz, the largest by-product silver producer on the planet whose annual silver production was 41 million oz in 2012.
Silver production at KGHM Polska Miedz declined a whopping 17% from 653 tonnes in 1H 2012, to only 544 tonnes 1H 2013.
I believe we will see the global peak in silver production occur first in the base metal mining industry.

The largest silver mining company in the world just came out with their first half financial results and the figures were dismal. 
Fresnillo’s first half profits declined a staggering 60% compared to the same period last year.  However, at current metal prices the largest silver producer in the world could be experiencing losses the second half of the year.

By SD Contributor SRSrocco:

The top primary silver mining company in the world, Fresnillo LLC saw its averge silver yield decline 13% in 2012.  The large percentage of the decline came from its flagship Fresnillo mine whose average silver ore grade fell from 396 g/t in 2011 to 328 g/t in 2012.
As ore grades decline, it takes more energy to produce the same or less metal. 

By SRSrocco:

After receiving a great deal of emails and replies on my declining ore grade work in the top gold and silver miners, I thought I would write this post to clarify a few misunderstandings.

The industry practice of mining and processing lower grade ore from a section of the mine is a short term practice that will not impact the DECLINING OF ORE GRADES BY THE AGING OF THE MINE all that much.