THE SILVER SHIELD: 10 KEY REASONS TO INVEST IN PHYSICAL SILVER

***Silver Mining Disruptions & Underperformance** The global silver supply is heavily impacted by the annual mining output. While a complete halt in silver mining is highly unlikely, any imbalance where demand outpaces the physical silver mined inevitably leads to shortages. The primary causes of these shortages are year-over-year production shortfalls and increased production costs, particularly in Central America. These rising costs are not being met by higher silver prices, making silver production less attractive to mining corporations. There have also been significant challenges related to maintaining high-grade deposits in traditional silver mines. As high-quality deposits are exhausted, miners must turn to lower-grade ores, which are more expensive and less efficient to process. This shift further limits production and reduces the overall market supply of silver.

***The Role of Byproduct Production** A significant portion of the global silver supply—over 66%—comes as a byproduct of mining other base metals like copper, zinc, and lead. This byproduct production is a game-changer for several reasons. Imagine mining for copper and unexpectedly finding additional silver. This scenario is common in many mining operations, where silver emerges as a secondary output, making up two-thirds of the global supply.

The cost efficiency of byproduct production is particularly compelling. Mines primarily target other metals, and silver's extraction costs are shared with these primary operations, making silver production remarkably economical. The demand for metals like copper, zinc, and lead remains robust due to their critical roles in various industries, from construction to electronics. As these metals are mined, the secondary extraction of silver keeps the silver supply buoyant without needing its own dedicated economic justification. By tying silver's fate to the fortunes of these primary metals, the supply of silver becomes indirectly dependent on the market dynamics of copper, zinc, and lead. When these metals are in high demand, silver supply gets a natural boost. Conversely, a downturn in these markets can ripple out to affect silver availability.