(1) On-ground spot silver stock

There are currently approximately 137,400 tons of spot silver in the world, and the above-ground spot silver stock is still growing at a rate of about 2% every year.

(2) Annual supply and demand

The annual supply and demand of spot silver is approximately 4,200 tons, and the new output of spot silver every year accounts for 62% of the annual supply.

(3) New gold mining costs

The average total cost of spot silver mining is approximately slightly less than US$260 per ounce. Due to advances in mining technology, the cost of spot silver development has continued to fall over the past 20 years.

(4) Political, military and economic changes in spot silver producing countries

Any political or military turmoil in these countries will undoubtedly directly affect the amount of spot silver produced in that country , thereby affecting the world's spot silver supply.

(5) Central Bank’s spot silver selling

The Central Bank is the largest holder of spot silver in the world. In 1969, the official spot silver reserve was 36,458 tons, accounting for all local spot silver at that time. 42.6% of the silver stock, and by 1998 the official spot silver reserves were approximately 34,000 tons, accounting for 24.1% of the total mined spot silver stock. Based on current production capacity, this is equivalent to 13 years of world spot silver mine production.

As the main use of spot silver has gradually changed from an important reserve asset to a metal raw material for the production of jewelry, either to improve the country's international balance of payments or to suppress international gold prices, the central bank's spot silver reserves over the past 30 years have There has been a large decline in both absolute and relative quantities. The decline in quantity is mainly due to the selling of inventory reserves of spot silver in the spot silver market. For example, the Bank of England's massive sell-off and the Swiss National Bank and the International Monetary Fund's preparations to reduce spot silver reserves have become the main reasons for the recent decline in gold prices in the international spot silver market.

Content source: Gold Rush