Silver

An estimated 40% of world silver mine production has been suspended due to mine closures ordered by the Peruvian and Mexican governments as part of their states of emergency due to the covid-19 virus.

The Peruvian is expected to extend the lockdown, due to expire on the 26th April, for another two weeks.  Worryingly, the number of new coronavirus cases in both Peru and Mexico is rising exponentially.

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Silver

An estimated 40% of world silver mine production has been suspended due to mine closures ordered by the Peruvian and Mexican governments as part of their state of emergency due to the covid-19 virus.

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The Peruvian is expected to extend the lockdown due to expire on the 36th April for another two weeks.  Worryingly, the number of new cases in both Peru and Mexico is rising exponentially.

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Most Mexican mining companies have announced production suspensions but Industrias Peñoles and precious metals subsidiary Fresnillo continue to operate. The companies have successfully argued that their operations are essential, in particular Peñoles’ smelter in Coahuila state where a shutdown and restart would be a long process.

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Given the situation in two of the world’s major silver producing countries, it’s surprising the price of silver is still languishing, and in fact falling after enjoying a small bull during the last week or so.

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Surprisingly, given the temporary mine production closures in two major producing countries, the silver to gold ratio is 109:1, close to the all time high.

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One wonders what has to happen for the price of silver to rise?

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