As discussed in previous posts, silver-specific mines contribute only 30% of the total primary supply; the rest of silver is produced as a by-product or co-product from mining other metals such as zine, copper, gold, etc.
Therefore, before determining the primary supply of silver it is quintessential to analyze the fundamentals of its co-product.
A strong correlation exists between the prices of silver and the core metals. Thus, with such a high degree of correlation, the prices of source products will have a major impact on the amount of silver mined.
For example, if the price of zinc is touching a new high, enhanced production is encouraged and an increase in the zinc production is bound to lead to an increase in the production of silver as no producer can part away from such a valuable byproduct.
Which means, prices of source products play a vital role in predicting the supply and consequently the price of silver itself.