Archive for the ‘Silver’ Category

We are the world’s largest silver producer: KGHM

Friday, May 8th, 2015

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[News release submitted by KGHM] – KGHM has regained its first position in the world’s silver production.

Thomson Reuters’s analysts have recently compared results of all leading producers of this metal. In 2014, KGHM produced 1,256 tons of silver, which is 7 percent more than in the previous year.

The World Silver Survey is one of the key annual reports on silver and the only to rank all producers of this metal. The survey is prepared by the GFMS team of global metals market analysts at Thomson Reuters. It is a synthesis of the silver market’s key indicators, comprehensive statistics and in-depth economic analyses. Information in the report is based on financial figures published by companies and interviews with their representatives.

This allows for reliable data on the global silver supply and demand to published in the report each year.

“It took us one year to regain our leadership position in the silver market. In 2013, we were ranked as third silver producer. In the previous year, however, we raised production by 7 percent due to optimum ore processing and smelting activities,” said Herbert Wirth, President and CEO of KGHM.

Poland was ranked in the eighth position as the largest silver producer.

The report is prepared in co-operation with Silver Insitute. It has been published since 1990, which means it is the 25th jubilee edition.


Henry Sapiecha

Chile’s Codelco production to be over 300 tons of silver in the coming year

Wednesday, July 9th, 2014

Silver production at Chile’s Codelco, the world’s largest copper miner, went up by over 38% in the first five months of 2014, compared to the same period last year, as a result of the company’s increasing efforts to become one of the globe’s top ten silver producers.

The company expects to produce between 300 to 600 tons of the precious metal this year, as its massive and new Ministro Hales mine ramps up production

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According to figures provided by the state-owned firm to Portal Minero (in Spanish), inferred silver production to date has reached 144 tons, 40 more than last year. The company expects to produce between 300 to 600 tons of the precious metal this year, as its massive and new Ministro Hales mine ramps up production.

Located on the outskirts of Calama, in northern Chile, the nearly $3 billion mine will generate about a third of the country’s silver production. It will also add 180,000 tonnes to global copper supply, helping to counteract declining ore grades in Codelco’s other mines.

Last year Chile’s total silver output reached almost 1,220 tons, a 5% of the world’s total.

Henry Sapiecha


Tuesday, July 31st, 2012


Eric Sprott announced that his company has $200 million committed to his self-named Sprott Physical Silver Trust, and the announcement will help silver.
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“We thought the timing was good in the sense that the silver price has been in the doldrums and there would be some underlying interest in the metal. We were happy the announced offering reached the target of $200 million because the issuing market is not very robust these days,” wrote Sprott on his blog.

Spot silver hit a high of $35.41/oz in February. It is now sitting at just over $28/oz.

While Sprott now has the money, his firm hasn’t pulled the trigger yet.

“So we were quite happy with the results. And initially it will allow us to buy seven million odd ounces of silver, which we haven’t bought yet, but it will certainly help the silver market.”

The Sprott Physical Silver Trust is an exchange-traded investment.
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Sourced & published by Henry Sapiecha


Saturday, August 20th, 2011

Despite a relatively stable day for stocks on Wall Street, gold futures continued its upward spiral on Friday trading above 1,850/oz after touching a new record high of $1,881/oz in morning trade.

A string of bad news about the US economy including declines in manufacturing activity, higher than expected retail inflation and higher jobless numbers on top of deepening fears about the soundness of Europe’s financial system, sent investors scurrying for the safe haven of gold and silver.

So far this year gold has gained more than 30% and silver, trading at $42.20/oz on Friday, has soared 40%.

Gold is up more than sevenfold from its August 1999 low of $251/oz shortly before global central banks started limiting bullion sales. Many observers believe that decision was the turning point for gold although it would take almost another decade before breaching the $1,000/oz level.

Adjusted for inflation gold remains below its 1980 peak of $850/oz which translates to around $2,400 in today’s dollars.

Most metals traded higher on Friday, with silver for September delivery adding $1.50, or 3.7%, to $42.22 an ounce. Silver hit a high of $47 in April this year in contrast to a value of only $5/oz for most of the 1990s and the early part of the last decade.

MarketWatch quotes strategists at Capital Economics: “Venezuela is running desperately low on dollars, suggesting that the repatriation of the gold reserves would be a precursor to their sale. We suspect that Venezuela would find some very willing buyers elsewhere given the continuing high demand for gold as a safe haven.”

Sourced & published by Henry Sapiecha


Tuesday, May 10th, 2011

All That Glitters is Not Silver

Investing is not easy during the best of times. If you’ve read my writings or are a member of my trading service “The Trojan Secrets”, you know that I am a strong believer that the markets are rigged…and not in your favor. Two weeks ago I recommended my readers sell out of a precious metals stock that we owned for a quick trade. The metals markets looked frothy and Silver looked especially vulnerable.

That being said, the bigger point is how these markets trade and how bubbles are going to be a part of our lives for a long time to come. In the past two weeks silver has fallen by more than 20%. That’s a huge drop for any commodity in that period of time. There may be more to come. If you think that the rise in gold has been meteoric, the rise in silver prices has been stratospheric!  Over the past decade, from low to high, silver had risen by a factor of 15 times, compared to a rise in gold by a factor of just five times. There was no justifying factor for this rise other than the fact that silver is viewed as the “poor man’s gold”. But, that’s really all the justification the market needs to create a bubble. In other words, there is NO justification for the rise, just as there was no justification for the Internet bubble, the housing bubble or tulip mania, which occurred in Holland in the 1600s.

Manias and bubbles are created by investor optimism and professional hype. Who on earth in their right mind would pay 1,000 time earnings or book value for an investment? Well, many people did in 1999. Who would pay $1,000 per square foot for a second tier condo overlooking nothing in Miami? Well, people were falling all over themselves to do it in 2006. But these actions could not have occurred without a source to finance or hype them to those levels. That’s where the professionals step in. They’re good at spotting trends, but just as bad at knowing when they have peaked. Still, they serve the purpose of fueling rallies on the way up and then they overreact on the way down, exacerbating the declines. The top tier guys, like Goldman Sachs, figure out how to make money from everyone…on the way up and on the way down.

Let’s take silver for example. On the way up analysts and investors alike were pumping up projections. Stories about short supplies, market manipulation by banks like JP Morgan, buying by fund managers like Soros, Tilson, newsletters hyping and even talk radio served the purpose to rally the troops to buy the metals. Market exchanges did nothing to quell the hype, allowing access to cheap money via low margin requirements for any who wanted to speculate on the metal itself. For commodities it doesn’t take much buying…or selling to cause volatile spikes or crashes. For silver there was an over abundance of buying and froth to send the price to $100 per ounce, not just $50.

So, what exactly happened just before silver reached that magical $50 level. Well, let me digress for a minute. The holy grail for silver was and still is $50 per ounce. Why is that number so important…and so bogus? It’s important because that was the high watermark for the metal set in 1979 when the Hunt brothers tried to corner the market sending the price from $6 per ounce to a high of $48.70. It was no “fundamental” rally, but one that was the result of market manipulation. That in itself is reason enough not to trust the “silver” technicians. What is interesting though is what followed. As silver set highs in 1979, the commodities exchanges increased margin requirements. This means that speculators like the Hunt brothers who were heavily margined, had to come up with a ton of cash to support their holdings. They couldn’t. Silver prices cratered and the Hunts lost hundreds of millions, along with many other investors. The parallel today is that the exchanges raised margin requirements twice in the past
two weeks…and silver crashed as speculators had to come up with more cash or liquidate their holdings. The lesson here is not so much that you shouldn’t invest in margin, but that rallies that are built on leverage and not fundamentals are destined to crash. And, that the government or the exchanges are the wild cards when it comes to investing. Read your brokerage agreement and you’ll realize that the deck is stacked against you.

Is silver’s rally over? Yes, for now. But there is a lot of merit to the argument for buying and holding commodities like silver and gold. The argument is the fundamental crisis faced by the US Dollar. That crisis was not as serious in 1979 as the US was not in the same debt hole as it is today. The question is not whether one should own silver or gold with part of their holdings, but at what price points. Recent action in the markets are telling us that the level is closer to $20-$30 for silver. Gold on the other hand has not reacted like silver which bodes well for its future.

Sourced from the league of power


Wednesday, February 9th, 2011
20 January 2011

Cloncurry Metals drilling to follow up high grade silver results at Espiritu Santo

Cloncurry Metals (ASX: CLU) has commenced a 2,000 metre diamond drilling program at its Espiritu Santo prospect to follow up on encouraging sampling results.

The prospect forms part of Cloncurry’s El Rodeo Project, in the south-western Mexican state of Michoacan.

The program is focused on intersecting veins below and along strike of very high grade silver (to 3,830 g/t) results from underground sampling received in early November 2010.

About 14 holes will be drilled from a limited six drill pads, which will drill fans of holes at different dips from each pad to test the veins, and give other information about the structures and geometry of the area.

Cloncurry Metals acquired the El-Rodeo project in early 2010, joining a host of foreign investors in the prosperous and mineral-rich area.

Sourced & published by Henry Sapiecha