IC 8427 Silver In The United States

The productive potential of the Nation's principal active and inactive silver mining districts has been evaluated, using 1964 economic conditions and assumed silver prices ranging up to $3 per ounce. On this basis, the United States has an estimated 5 billion ounces of unmined silver, excluding minor byproduct silver in gold deposits. Approximately 3.5 billion ounces are contained in deposits requiring higher silver prices to be economically minable, and about 1.3 billion ounces are in currently operating mines. An analysis of silver consumption trends since 1954 indicates that the free world industrial market will climb to nearly 800 million ounces annually by 1985. U.S. industrial silver consumption has been projected to increase at an annual rate of 4 percent from 1965 to 1985. Average annual increase for the remainder of the free world has been 8.1 percent since 1953; this is expected to level off with an estimated average increase of 5 percent to 1975 and 4 percent from 1976 to 1985. Foreign silver production has, in the past, exceeded consumption, but in 1960 the supply deficit was over 100 million ounces. U.S. production, also traditionally exceeding demand, was suddenly overtaken at the start of World War II. By 1964 the annual deficit, excluding coinage, was over 84 million ounces. World coinage requirements of silver are fast declining and expected to total only 25 million ounces annually by 1985. In fact, coins are already becoming major short-term source of silver to fill the large deficit between industrial demand and current production. The larger, long-term deficit (to 1985, the limit of this study) must be balanced by silver from the hoards and new production from silver deposits. Eventually all of the deficit must be met by new production or silver prices will rise until consumption is greatly curtailed. To balance free world supply and demand, it is estimated that the free world must produce an additional 85 million ounces by 1975 and 375 million ounces by 1985. The estimated proportion expected from U.S. deposits is 17 million ounces by 1975 and 74 million ounces by 1985.