As the silver price rally continues, mine supply from three of the top producing countries fell significantly this year. Peru, Chile, and Mexico all reported declines in silver mine supply in the first half of the year, with Peru suffering the largest drop off. With these three countries accounting for 45% of total global silver production, a reduction in mine supply can impact the overall market.

According to the mine supply data reported by each country, Peru’s silver production is down 10% in the first half of the year, while Chile fell 7% and Mexico was lower by 4% (Jan-May). The total decline in silver production from these three countries in just the first half of the year is 12 million oz (Moz):

As we can see from the chart, Peru’s silver m ... Read more »