Friday, May 18, 2012

Dear Silver Bugs: There are a Billion Ounces of Supply Coming on the Market This Year

In premarket trade the ETF is up 1% at $27.53.
From Mineweb:
Silver supply to pass the billion ounce mark this year-CPM

Silver price increases have had a positive impact on primary silver producers as global silver mine production may hit 729 million ounces this year, and total supply over 1 billion ounces, says New York-based CPM Group.
Newly refined market economy silver supply is set to surpass one billion ounces for the first time in 2012, according to CPM Group's Silver Yearbook 2012.

Market economy silver mine supply was entirely responsible for the increase in total silver supply in 2011, with secondary silver declining during the year. Total refined market economy silver supply rose 22.6 million ounces to 995.1 million ounces in 2011.

After rising for nine consecutive years, total silver supply is forecast to reach 1.01 billion ounces in 2012 with nearly all of the projected increase expected to come from higher mine production.

Silver mine production in market economies was 713.6 million ounces in 2011, surpassing the 700-million ounce mark for the first time on record. Mine supply increased most strongly in China and Mexico, the two largest silver producers. Silver mine supply is forecast to reach 729 million ounces this year, up 15.4 million ounces from 2010....MORE