Peru’s 2020 Silver Production Down By 1/3 Due To Mine Lockdowns

6 July 2020


The world’s second-largest silver producer saw its mine supply fall by one-third due to lockdowns stemming from the global contagion.  When the Peru Ministry of Mines released its metals production figures last month for April, the country’s domestic silver mine supply fell by a stunning 74%.

Then on July 3rd, Peru released its production figures for May.  While the decline in Peru’s silver mine supply in May wasn’t as bad as April, it was still down 66% versus the same month last year.  Peru’s silver production fell to 85 metric tons (mt) in April and 116 mt in May:

The data from Peru’s May Mining Statistical Bulletin shows that during the first five months of 2020 (Jan-May), domestic silver production is down 485 mt, or 32%, compared to the same period last year.  Already, Peru has lost 15.6 million oz of silver production in 2020.

If Peru’s mining industry totally recovers for the remainder of the year, the country’s silver production will not be able to make up the losses from March to May.  Peru’s silver mine supply peaked in 2017 at 142 million oz, and if they totally recover from June-December, production will be 108-110 million oz.  If this is the case, then Peru’s silver production in 2020 will have fallen 22% from its high in 2017.

INVESTOR WARNING:  I am going to be repeating this analysis over and over again because it seems as if the market has disregarded the MASSIVE DAMAGE already done to the U.S. and global economy.

In the second half of the year, especially in Q4 2020, we are likely to see a great deal of economic trouble.  According to the article on CNBC, 30% of Americans missed their mortgage payment in June.  With this second wave of the global contagion hitting the U.S., states are now reversing their “Opening Up of the Economy.”

Furthermore, U.S. Passenger Airline Traffic was down 53% in March and a stunning 94% in April.  They haven’t released the data for May yet, but it’s still likely extremely low.  Again, with the threat of a second wave of the contagion, it could hurt the Airline Traffic recovery.

Americans need to make sure they are protecting some of their wealth in physical precious metals.

Read more at the original source here:

Share this page