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Although silver is widely known as a precious metal, its industrial uses accounted for more than 50%of silver demand in 2020.
From
jewelry to electronics, various industries utilize silver’s high
conductivity, aesthetic appeal, and other properties in different ways. With
the adoption of electric vehicles, 5G networks, and solar panels, the
world is embracing more technologies that rely on silver.
But, as Visual Capitalist's Govind Bhutada details below, behind all this silver are the companies that mine and refine the precious metal before it reaches other industries.
Mexico, Peru, and China—the top three producers—combined for just over 50% of global silver production in 2020. South and Central American countries, including Mexico and Peru, produced around 390 million ounces—roughly half of the 784 million ounces mined globally.
Silver
currency backed China’s entire economy at one point in history. Today,
China is not only the third-largest silver producer but also the
third-largest largest consumer of silver jewelry.
Poland is one of only three European countries in the mix. More than 99% of Poland’s silver comes from the KGHM Polska Miedź Mine, the world’s largest silver mining operation.
While
silver’s supply chain spans all four hemispheres, concentrated
production in a few countries puts it at risk of disruptions.
The Sustainability of Silver’s Supply Chain
The
mining industry can often be subject to political crossfire in
jurisdictions that aren’t safe or politically stable. Mexico, Chile, and
Peru—three of the top five silver-producing nations—have the highest
number of mining conflicts in Latin America.
Alongside production
in politically unstable jurisdictions, the lack of silver-primary mines
reinforces the need for a sustainable silver supply chain. According to
the World Silver Survey, only 27% of silver comes from silver-primary mines. The other 73% is a by-product of mining for other metals like copper, zinc, gold, and others.
As the industrial demand
for silver rises, primary sources of silver in stable jurisdictions
will become more valuable—and Nevada is one such jurisdiction.
Nevada: The Silver State
Nevada, known as the Silver State, was once the pinnacle of silver mining in the United States.
The
discovery of the Comstock Lode in 1859, one of America’s richest silver
deposits, spurred a silver rush in Nevada. But after the Comstock Lode
mines began declining around 1874, it was the Tonopah district that
brought Nevada’s silver production back to life.
Tonopah is a silver-primary district with a 100:1 silver-to-gold ratio. It also boasts 174 million ounces of
historical silver production under its belt. Furthermore, between 1900
and 1950, Tonopah produced high-grade silver with an average grade of
1,384 grams per tonne. However, the Second World War brought a stop to
mining in Tonopah, with plenty of silver left to discover.
Today,
Nevada is the second-largest silver-producing state in the U.S. and the
Tonopah district offers the opportunity to revive a secure and stable
source of primary silver production for the future.
Blackrock Silver is working to bring silver back to the Silver State with exploration at its flagship Tonopah West project in Nevada.