What impact does different sources of silver supply have on prices?
Silver cannot be created by man; silver is a natural metal element found in the earth’s crust. The main sources of silver supply are newly mined metal from the ores.
Silver obtained as a byproduct or co-product of gold, lead, copper, zinc, and other mines. As a miner brings these other metals to the surface, raw silver is brought up as well.
Recycling and government sales constitute the secondary sources. Any kind of delay, interruption or reduction in the governmental or recycling source(s) will often result in big market price hikes, as the daily silver demand begins to surpass supply.
Likewise, advances in government sales and increases in recycling will result in big market declines, as the daily silver supply begins to surpass demand.