The Economics of Silver and the Miner

In the past two years recent increases in silver prices over levels that prevailed for many years have changed supply/demand patterns. On the supply side, a silver mining boom is in progress in the United States and elsewhere. On the demand side, traditional uses of silver by individuals are dropping while industry is conserving. These changes will alter the supply/demand balance and bring about more moderate rises in silver prices, which in turn will impact the mining industry.