+49 30 6521 24928 (GER / ENG) support@bar9.com

The World’s Largest Silver Producer is Closing Domestic Mines for a Full Month

JP Buntinx
April 2, 2020

The impact of the global coronavirus continues to  result in surprising developments. Mexico is the next region to curb its silver production. It is believed that this situation may remain in place for a month or perhaps even longer.

Silver Production Slows Down in Mexico

Health concerns imposed by the global coronavirus crisis cannot be taken lightly. It is virtually impossible for non-essential businesses to remain operational during the current circumstances. This has also begun to affect companies involved in the production of precious metals. 

In Mexico, there will be a major change for most silver mines. Multiple locations will have to shut down their operations for at least one full month.  This measure isn’t entirely surprising, as similar restrictions have been put in place across the world.

These measures will have a severe impact on the global production of silver. It is estimated that Mexico produces 6,300 metric tons of silver in 2019. This represents 23% of the global mine supply, further stressing the importance of Mexican gold mines.  

It is safe to say that Mexico is the largest silver-producing country in the world today. With its domestic silver mines now being shut down for at least 30 days, the country’s output will take a significant hit. Interrupts of silver-mine productions should make an impact on the market, albeit it is difficult to predict what will happen exactly. 

No Automatic Silver Price Increase

One possible consequence to the decrease in silver production in Mexico is how it could affect the price of this precious metal. That being said, analysts are not convinced this will result in a higher price. A reduced supply of a commodity can happen every now and then. Industrial demand for silver has also decreased massively, potentially offsetting the production decrease impact. 

There are also transportation issues to keep in mind. Mexico, but other countries as well, note issues when moving silver from one country to the next. These shipments are taken care of through air freight, but moving supplies has proven difficult. It would appear that most planes carrying air freight are not getting off the ground. 

While the cards are stacking up to warrant a silver price increase, the market remains incredibly unpredictable. With lower demand, and no real increased interest from investors, the silver price may remain at a status quo for some time to come. Forecasting a market outlook is difficult these days, thus anything can happen when traders least expect it. 

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.

Coronavirus-Infused Market Volatility is Bound to hit Australia and New Zealand

It now seems that Asian markets are recovering a bit. It is still too early to determine if the coronavirus crisis is under control in that part of the world.

Indian Officials Confiscate 9.3kg of Gold From Smugglers

What is rather interesting is how all of these bars have forged foreign markings. The objective of the individuals was to sell it in Mangaluru and districts of North Karnataka

Gold Bug Profile: Peter Schiff

Despite paying very close attention to investment options such as gold and silver, Peter Schiff isn’t optimistic about Bitcoin and other cryptocurrencies.

South Africa may Shut Down its Gold Mines due to the Coronavirus Crisis

This news coming out of Mongolia is rather surprising. Unlike other countries, it would appear that this region is still providing ample access to gold deposits.

Silver Bug Profile: Stewart Thomson

Many people keep an eye on the precious metals markets, as those segments have tremendous profit potential. Stewart Thomson can be classified as a silver bug, primarily because he expects things to head in a very promising direction.  Who is Stewart Thomson?...

Analyst Outlines how Silver is a Seriously Undervalued Asset Right now

Everything comes down to how things will evolve over the coming months. If the demand will pick up again, and the supply remains very limited, things may begin to shift in a few months from now.

Recent Actions by the Federal Reserve may Spark Demand for Gold and Silver

Such extreme measures often come at a long-term cost, however. While the measures taken allow for stock markets to rebound, it also devalues the US Dollar.

Gold Bug Profile: Ron Paul

Ron Paul has not always been a politician, however. He also serves as a flight surgeon in the US Air Force and performed duties as an obstetrician-gynecologist.

Gold and Silver Premium Prices Spike in Singapore and Hong Kong

Obtaining physical gold isn’t the only problem. Those businesses requiring a steady supply of silver are in an even bigger pickle right now

Gold Bug Profile: James Rickards

Back in 2009, he claimed that the US Dollar would face imminent hyperinflation. Moreover, the greenback was, in his opinion, vulnerable to attack by foreign governments.

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: Jim Rogers

The dollar is, according to Jim, not a safe-have, and should be traded in for more stable long-term investments such as silver and gold.

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.

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...

When And How To Invest In Gold

Dear Bar9 customers, unfortunately, we all live in extremely uncertain times. And the so-called "markets" in particular are also showing signs of nervousness: the price of gold, for example, goes up sharply one day, only to go down again the next. At the same time,...

Gold Bug Profile: John Paulson

It is also worth noting that the gold sector has treated Paulson rather well in his career. Back in 2010, he set a hedge fund record by making almost $5 billion in just twelve months.

Silver Bug Profile: David Morgan

Morgan prefers educating the masses on how a sound financial system would work. What we have in place as of right now is the exact opposite of a sound system

Gold vs Negative Interest Rates

The world is teetering on the brink of a new economic policy. Not one that was written about by capitalism's founding father Adam Smith, or even John Maynard Keynes, but a giant experiment in which we will all be the subject. Negative interest rates threaten to turn...

Best Practices When Using Mobile Payments During the Novel Coronavirus Outbreak

Solutions such as Apple Pay, Google Pay, Samsung Pay, and WeChat Pay are all perfectly usable during these troubling times.

Silver Bug Profile: Nathan Eric Fier

Many individuals have shown their love for gold, silver, and other precious metals over the years. Nathan Eric Fier is certainly a silver bug, although he pays close attention to gold as well. Who is Nathan Eric Fier? People with a link to the financial industry will...

Translate Blog Post

Article Categories

Blog Stats

  • 59,171 hits

Follow the CEO on Twitter

%d bloggers like this: