Well, THIS Is Interesting:
The US Mint advised the largest AP’s on Friday that they had stopped production of 2016 Silver Eagle coins.
After the report triggered a deluge of inquiries to the Mint, their official spokesman is now denying the Mint has stopped production on the coins.
Something is fishy in Denmark…
I have just received word that American Silver Eagles, as reported by the U.S. Mint, sold exactly zero coins on Friday July 8, 2016. The Mint did manage to sell paltry 2,000 American Gold Eagles. If the Mint isn’t moving silver into the Authorized Purchasers (AP), that means the AP’s shelves are still full even though premiums are dropping.
Where is all the silver going?
Just what is the All-In cost to get an ounce of silver out of the ground today?
First Majestic Silver’s Keith Neumeyer provides an insider’s view on silver in this excellent interview:
U.S. Silver Mining Production Doesn’t Cover American Silver Eagle Demand.
Since 2010, the amount of silver required to mint American Silver Eagle coins has exceeded U.S. silver mining production by over twenty-five million ounces.
The deficit in 2015 alone is projected to be approximately twelve million ounces.
There continues to be a lot of misinformation on the internet, even on the alternative media. So, I thought I set the record straight.
Yes, it’s true…. the facts show that the U.S. peaked in silver production a century ago.
That’s correct, 100 years ago.
So its not just a US “manufacturing capacity” phenomenon!?!
There is no other way to describe the radical change that has taken place in several areas of the silver supply market this year other than to say…. it’s quite SHOCKING.
While certain analysts stated that the silver supply would indeed fall this year, I don’t believe anyone could have envisioned the kind of declines experienced in the chart below.
I thought there might be a chance that this silver data was incorrect… a typo of some sort.
However, the second quarter figures that were just released confirm just how dreadful silver supply has fallen…
In a stunning development, the world’s largest silver producing countries reported big declines in recent months. This was surprising because the top two producers, Mexico and Peru, stated positive growth in the first two months of the year.
However, silver production from these two countries reversed this trend by declining in April and May.
Mexico is the largest silver producer in the world. The only two countries that come remotely close to Mexico’s number one ranking are Peru and China. However, these countries trail Mexico by more than 50 million ounces.
According to the INEGI, Mexico produced a record 186 million ounces (Moz) of silver in 2013, but this declined to 184 Moz in 2014.
In this week’s Metals & Markets, The Doc & Eric Dubin break down the week’s action discussing:
- First Majestic Silver takes on the cartel- holds back 35% of Q3 silver production- CEO Keith Neumeyer issues call for silver miners to form their own cartel to put an end once and for all to paper manipulation
- Russian/ US Geopolitical crisis escalates- Putin warns of MAJOR CONFLICT with US, loss of reserve currency status for dollar
- Swiss Gold Referendum- could a YES vote shatter the cartel’s grip on gold?
- Silver market tightens- premiums are on the rise as Royal Canadian Mint begins allocating silver maples, major private mints running production delays on PHYSICAL metal
- Gold predictably capped at $1250- whats next for gold & silver?
The SD Weekly Metals & Markets With The Doc & Eric Dubin is Below:
In the MUST LISTEN interview with Future Money Trends below, First Majestic Silver CEO Keith Neumeyer issues a call to fellow silver mining companies to HALT physical silver sales, and band together to form an OPEC-like cartel to combat the criminal banking cabal manipulating the precious metals markets!
“We all know the paper market has NO representation to the physical market.” – Keith Neumeyer, CEO, First Majestic Silver Corp.
Full MUST LISTEN interview is below:
The U.S. Empire is in real trouble.
While it’s true that the gold and silver market have taken a lot of punishment over the past several years, there’s a good reason China, India and Russia continue to add to their gold hoards.
The day will come when an AVALANCHE of countries exiting the Dollar will finally destroy its value.
Unfortunately, the majority of Americans holding onto paper assets will be the last to know when this occurs, while precious metal investors saw it coming….. much later than they anticipated.
A Perfect Storm for Mining
While it may seem to some that mines might be able to continue producing the amount of silver they’ve been accustomed to producing well into the future, the truth is that these mines, especially primary silver mines, are starting to hit the silver wall of reality.
With the costs of petroleum and diesel soaring, ore grades plunging, and the price for their product free-falling, there’s a perfect, catastrophic storm brewing in the mining sector.
The banksters’ precious silver supply, despite all their efforts, is stagnant, and actually decreasing. They’re moving heaven (and twice as much earth) just to sustain this inadequate supply just.a.little.bit.longer.
The moment the metal stops, or even slows its flow in any reasonable quantity, is the moment the scheme comes crashing down. That’s a problem too, because the evidence is mounting that we are headed into a “peak silver” scenario.
It gets worse for our bankster friends massively short silver, much worse…
- Is a crash to new lows imminent, or did we see the bottom Friday afternoon as gold broke below $1250 and silver below 18.70?
- Retail demand EXPLODES– SDBullion saw largest single day sales volume EVER Friday as nearly 20,000 oz of physical silver were withdrawn from the market
- Russia, Kazakhstan, & Belarus sign Eurasian Economic Union Agreement- accelerate plans to launch “gold” Altyn currency to replace the USD in trade!
- GOFO rates & options expiration- implications for the metals
Full Coverage of the Latest PM Take-down is Below With This Week’s SD Metals & Markets!
Not only did Canadian Maple Leaf sales shatter all records in 2013, their percentage gain was twice as much compared to Silver Eagles. The Royal Canadian Mint just released their 2013 Annual Report and sales of their Silver Maples were the highest on record.
There’s a new Silver Sheriff in town, and it happens to be located north of the U.S. border.
There is an insidious Dark Side to the silver mining industry that goes unnoticed by the majority of investors and analysts. Actually, I haven’t come across one miniyng analyst who puts out comprehensive data on this very subject for the silver mining industry.
According to my figures for 2013, the top primary silver miners suffered the lowest average silver yield ever. That’s correct… another year of declining ore grades and yields.
For those analysts who believe the price of silver is heading lower in the future… the falling yields and increased costs will prove otherwise.
Even though 2013 was a great year for physical precious metal demand due to manipulated lower paper prices, the top silver mining companies suffered a decline in overall production compared to 2012. Of the top six companies, the largest four stated declines, while the two smaller producers increased mine supply slightly.
The chart below shows the change in production year-over-year from the top silver mining companies:
Many investors believe that a company can produce silver at its cash cost. If Hecla was producing silver at its $7.40 cash cost per ounce in Q3 2013, why in the living h*ll did they have a $8.4 million loss at a realized price of $22.22?
The top primary silver miners Break Even for Q3 2013 was $21.39 for the group. However, a great deal of cost cutting was done to get it down to that amount. I don’t see this as a sustainable figure over the longer haul if these companies want to replace production and remain healthy in the future.
I still believe the primary silver miners will be some of the best investments to own in the next several years. As the world’s fiat monetary system gets revalued in the future based on a physical assets, we are going to see a big move up in the value of gold and silver. Physical metal will be hard to acquire, so the miners will be the next best thing.
Mark my words….
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.