By SRSrocco:
According to this GoldCore article posted on SD this morning, the Chinese silver demand will hit 7,700 metric tonnes in 2012. Last year India’s silver demand was 4,000+ metric tonnes. We can safely assume they should have about the same figure in 2012.
This means Indian and Chinese silver demand alone will account for 50% of global silver mine supply!!!
2012 SILVER DEMAND
CHINESE SILVER = 7,700 mt
INDIA = 4,000+ mt
TOTAL = 12,000 metric tonnes?
12,000 metric tonnes = 386 million oz (more than half of 2011 global silver supply)
This would be nearly 50% of all the silver that was mined in 2011. Of course we do have a good amount of silver coming from recycling… but regardless, this is a significant demand from just two countries.
While it is true that these two countries have the largest population, I believe we have just begun to see how much silver they will be consuming in the future.
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Good news. What is the current amount of silver coming from recycling and what will it’s trend be in the future?
What is recycling compromised of ? Old silverware being exchanged for dollars? Or Silver being salvaged from thrown away electronics?
Yep, like us, they’ve been stacking the smacks. They know the dollar and fiat currencies are doomed.
Now the music starts to play for us.
With silver mines ore grades dropping, oil prices rising, mine nationalization, increasing labor strikes and base metal production sliding due to worldwide demand decreases (silver is a side product) this China-India demand should set up a perfect storm of scarcity and price explosion in this metal.
But nooooo, prices have not moved the needle appreciable for over a year except within that narrow $27 to $35 an ounce band. The suppression of this price will not hold so let’s celebrate the fact that these two nations are the silver liberators we’ve sought for years. It’s funny that our salvation comes from this quarter. Maybe we would have been better served by someone in the western world doing the deed and saving silver but I guess this will work out. Greed and foolish policies have been the way of our world. The western powers had their chance but blew it.
Anyone out there speak Mandarin? We should have someone who can greet the new silver lords of the universe in their native tongue if they’ll speak to us (just kidding, sort of)
BTW if India and China like silver at $32 an ounce we should be likiing it too.
“BTW if India and China like silver at $32 an ounce we should be likiing it too.”
We do. Add to the Chinese & Indian demand that ASE production exceeds US mining output. Although I read that a significant portion end up elsewhere – mostly Europe.
So, 2 of the largest silver mining countries are actually net importers.
Of course China and India are going to save gold and silver because these two metals are part of their cultures. I know that in the Hindu religion which is in India, gold represents wealth and there are multiple gold coins in a jug hold by the god Lakshmi.
I have never met a STUPID Chinese person. Nor Indian.
Cannot say that about …. well … you know.
I will rock with ‘em.
I work in a research department and read this week that on average, smartphone users in the US spend $25/month on apps, and tablet-PC users spend $65/month. How crazy?! When this silver bull market moves into gear, l can see the price of silver spiking at $500/oz. Just a waiting game, nothing more.
The clock is ticking for the cartel going up in smoke. When physical demand reaches a tipping point they won’t be able to keep the price down.
It is amazing that even with all the uses and with its low price, silver still haven’t lost its statue as a precious metal. With its uses, silver isn’t treated like a precious metal. Silver should become a country’s currency and then the real value of it will appear. Also, I’ve heard that there aren’t a lot of facilities who recycle silver because the amounts of it in electronics are so small so it is not worth the price to recover them so the recycling of silver won’t meet silver’s demand.