Silver Supply Slows & Coins Stay Strong

Yesterday we reported on increasing industrial demand for silver and referred to older stories of supply.  Coincidentally the Wall Street Journal ran a story 2 days ago with the headline “Silver Mine Supply Is Running Out of Steam”.  They reported on a recent Thomson Reuters GFMS study that said after 12 straight years of increasing silver supply production is expected to fall in 2015 as this persistent low price takes it’s toll and saying “We’re just not seeing the investment in new mine capacity”.

They go on to say that the supply to demand shortfall seen even last year amid record production will worsen this year on a combination of increased demand and lower supply.  Last year supply lagged demand by 4.9m oz.

We also learned yesterday of the Royal Canadian Mint’s 2014 figures when they finally released them and saw 29.2m Silver Maples sold from 2013’s already record breaking 28.2m.  The Silver Maples are the world’s second biggest selling silver bullion coin after the US Mint’s Silver Eagles.  US Silver Eagles also saw a record year last year at 44m and to the end of April 2015, the U.S. Mint has sold 14,922,500. By comparison, to end of April 2014, they had sold 17,448,000.

With the Thomson Reuters GFMS report predicting silver prices to rise this year on the back of this exacerbated supply deficit, we could easily see those US Silver Eagle numbers jump to meet last year’s record.