Is Silver Really Scarce?

JP Buntinx
August 8, 2020

Silver is a very interesting precious metal, although it is anything but scarce. Compared to gold, there is a lot more silver ore – and more silver deposits – to be found all over the world. Despite this aspect, it remains a solid investment, all things considered.

Silver is Somewhat Common

When people think about mining cryptocurrencies, scarcity is often a factor to take into account. Gold, for example, is not found in every single country around the world. Its biggest concentrations are usually found in mountainous regions, or in the case of Alaska, on the bottom of the Bering Sea. 

Silver is a very different creature altogether. It is, according to statistics, the 68th most abundant element on our planet. Smaller quantities of silver can be found nearly anywhere in the world, although it may take some time to effectively come across it.

Larger amounts of silver, on the other hand, are found primarily in North and South America. These two regions are home to a lot of mining companies, both for silver and gold. It is also possible to find one of these precious metals as by product of the other, increasing one’s potential for profit accordingly.

To this date, North and South America combined produce half of the world’s silver supply. There is no end in sight either, as new deposits have been discovered on a rather regular basis. This often occurs when one is looking for copper, sulfur, or zinc.

Mining Remains Profitable

Prior to the most recent silver price surge, mining operators were already in profit, for the most part. Even at half of the current silver value, they are not losing money. This further confirms how economically viable it is to mine silver, and how little money has to be spent to extract bigger quantities. 

As such, it is safe to say that scarcity is not much of an applicable trait for silver. While it can’t be found in the atmosphere, or on the ocean floor, it is abundant in many other locations. 

More importantly, the mining of silver keeps ramping up. Breakthroughs in technology have allowed for far more efficient and streamlined mining operations. This further reduces the cost of extracting the ore. 

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Gold Bug Profile: Richard Russell

Back in 1960, Russell was the first to recommend gold stocks as an investment option, an assessment that has certainly put a bigger spotlight on that particular industry.

Wealth Diversification is Crucial, Especially During the Novel Coronavirus Outbreak

Putting all of one’s eggs in the same basket during a time like this is virtually the same as throwing money out the window.

Welcome To The New Bar9 Rebranding

To all Bar9 customers, I'm proud to announce the rebranding of Bar nine and a whole new informative front end. As we move into 2020 Bar9's mission is to make it easier for anyone to move in and out of physical hard assets and become a little more bank independent. The...

Silver Bug Profile: Adam Hamilton

Most mining operations have very mixed – and primarily disappointing – results in Q1. That has not affected the price of silver in a negative manner.

Gold Bug Profile: Doug Casey

The name Doug Casey will ring a bell with financial buffs due to his 1979 book. Titled “Crisis Investing”, it quickly rose the ranks to become the number one The New York Times Non-Fiction Best Seller in 1980.

Silver Bug Profile: Rick Rule

When it comes to the silver market, Rick Rule hasn’t shied away from expressing his sentiment at certain times

Gold Bug Profile: Ned Naylor-Leyland

During an interview with Morningstar, Ned confirmed that he remains very bullish on gold for the foreseeable future. He even claimed that there is a good chance to see the gold price move higher, although Ned doesn’t offer potential price targets.

Gold Bug Profile: Judy Shelton

It is interesting to note that Judy Shelton may join the Federal Reserve Board of Governors in the near future. Assuming that will be the case, some very interesting things are bound to happen in the near future.

Unveiling the System Behind the IMF Lending $50 Billion to Member States Fighting the Coronavirus

Currently, it has yet to be determined which options will be explored by the different member states. There is no such thing as free money, not even during a coronavirus outbreak.

Gold Bug Profile: Alan Greenspan

There are many pathways in life which can influence the future of one’s existence. For Alan Greenspan, one pathway of particular influence is called Objectivism.

Gold and Silver Bounce Back as Stock Markets Continue to Struggle

Although the markets aren’t out of the woods yet, things are looking better. There is some positive momentum all around, for a change.

Where is the Best Place to Buy Gold Online?

As far back as Ancient Rome, prospectors would sit aside streams swilling water in pans with the hope of glimpsing the yellow metal. Even today, you can still get your hands on gold in this way, but buying online through a broker is your best bet for a secure, cheap...

Silver Bug Profile: Jeff Clark

Over the past decade and a half, Clark has put the majority of his focus on analyzing the precious metals mining industry. BIG GOLD by Casey Research, a world-renowned publication, has been one of his outlets.

CME Increases Margin for Silver Futures Contracts due to Expected “Larger-than-Normal Price Swings”

The recent margin changes by CME paint an interesting short-term future for silver. Raising the margin requirements seems to be a sign for shorters to not go against the grain right now.

Silver Bug Profile: Keith Neumeyer

Keith indicated that there would be a new bull market for all precious metals in the next few years. So far, 2020 has proven that sentiment correct, although $130 remains a lofty silver price target.

Gold Bug Profile: Eric Sprott

It is also worth noting that Eric Sprott sold his first company – known as Sprott Securities – back in 2011. Interestingly enough, the company was purchased by other staff members.

Gold Bug Profile: Crispin Odey

Over the years, the name Crispin Odey was often named in association with gold and other precious metals. Particularly during the coronavirus crisis, Odey expected the value of gold to move up again.

Gold Bug Profile: Ewan Downie

Since leading Premier Gold Mines Limited since 2006, the company has gone through major growth. Its stock is also trading publicly, further validating its approach to gold and silver.

Gold Bug Profile: Ben Davies

Ben Davies is the co-founder and CEO of Hinde Capital. Founding this company came after building up over a dozen years of experience in financial and commodity markets.

Where to Store Gold: Switzerland vs America

Savvy investors will already choose physical gold to avoid the counterparty risk of futures accounts, ETFs, and other forms of paper gold. But the jurisdiction of gold storage represents another, often overlooked counterparty risk.  When disaster strikes and the...

Translate Blog Post

Article Categories

Blog Stats

  • 112,976 hits

Follow the CEO on Twitter

%d bloggers like this: