Global silver mine production was down last year for the first time since 2002, according to a report by the Silver Institute.
This was due to lower lower capital expenditures in prior years. Scrap flows dropped to a 24 year low, the report said.
The Silver Institute said last year was a turning point for silver prices on an annual average basis, with dollar denominated prices up 9.3% to US$17.14 an ounce, marking the first increase since 2011.
“Central to this performance was a turnaround in investor interest in Exchange Traded Products (ETPs), aided by geopolitical uncertainty,” the Silver Institute said.
During the first quarter of 2017, silver prices rose from below US$16 to peaks over US$18.
Global silver mine production declined by 0.6% in 2016, reaching a total of 885.8 Moz (27,551 tonnes).
A large portion of the drop was attributable to the lead/zinc and gold sectors, where production fell by 15.9 million ounces.
Of the key producing countries, Mexico registered the biggest drop at the global level, followed by Australian and Argentina.
Companies with exposure to silver include
Barrick Gold Corp. (
TSX: T.ABX,
Stock Forum).