Mexico silver production- Interesting article

[highroller4321]

http://www.plata.com.mx/mplata/articulo ... ticulo=312




"Mexico is the world's largest producer of silver. What would happen if Mexico, following the example of China, should decide to purchase all the silver it produces, for the Reserves of Banxico? Or if not all, half? Or a quarter of Mexican silver production? If Mr. Trump, or the Fed, would take very badly the purchase of significant quantities of silver by Banxico, the US would be hardly likely to punish Mexico if it initiated a modest program to accumulate silver for the Reserves of Banxico, especially taking into account that the private mega-bank JP Morgan of New York possesses - according to the conclusions of careful observers of its activities in New York - amounts of physical silver that are calculated to be between 100 and 200 millions of ounces of silver, and possibly more: a quantity similar to the annual production of silver on the part of Mexico.
Mexico is the world's largest producer of silver. The subtraction from the world's production of silver, not of 100% of Mexico's production, but by only a small amount of it, would lead to a considerable jump in its price, for two reasons: First, because when a Central Bank adopts such a measure, the markets attribute great importance to the fact, and Second, because any subtraction of silver bars from the markets will have disproportionate repercussions upon its price: the price of silver in NY is controlled through enormous sales and purchase transactions, but these result in a practically negligible delivery of physical silver. The movement of physical silver into investment, compared with the volume of sales and purchases, is minimal, not to say microscopic (See note 1). Therefore, the subtraction of a relatively small quantity of physical silver could easily cause a doubling in its price - not only the price of the silver sold by Mexico in foreign markets, but also in the value of the silver Reserves held by Banxico, which would be of total liquidity.
Mexico has every right to defend the price of its silver –a non-renewable asset– for the benefit of the country's mining industry, against the manipulation exerted by the US, that aims at maintaining the depressed price of silver."

[68Camaro]

It was published in English? That wasn't an accident.

[IdahoCopper]

He said that a fiat currency cannot be replaced by a new fiat.

That is the hinge of his argument. He could be right or wrong about that, so it could go either way.

I can confidently predict, with certainty, exactly when the moonshot will happen. It will happen 2 weeks after I finish selling my hoard. If I never sell, the moonshot will never happen.

[Recyclersteve]

Interesting info- I agree, but I am still skeptical. I'm sure others can add quite a few other reasons to my list below, but here is just a partial list of reasons why PM's should have already had a moonshot AFTER the silver max hit in Spring, 2011:

1) Hong Kong (or was it Shanghai?) opening a metals exchange to supposedly make things more honest.
2) Gold being elevated in Europe to a Tier 1 asset.
3) The price of silver dropping below actual production cost for a number of miners.
4) Gold being available in vending machines in the Middle East.
5) End of the dollar as reserve currency.
6) China and Russia accumulating gold in bulk.

And on and on and on. What has all this done- nothing. Now maybe if some of the billionaires who have homes in the Queenstown, New Zealand area (and don't have to worry about being prosecuted in the U.S. like the Hunt Bros. back in the early 80's) started to hoard massive quantities of silver, that could cause a substantial move in the price.

I'm not sure what else would cause a meaningful spike, unless a major company that uses a lot of silver (think Apple (actually their contract manufacturers like FoxCon) or Ford or G.E. or Flex Ltd. (a contract manufacturer with operations in Singapore)) said they were having a hard time getting silver and started to stockpile it. A real legitimate widespread shortage might have implications that last for a while as it takes a while for a mine that has been shuttered to bring back production. Think about the permits that are needed and all the fights they will have with local environmentalists. Those battles can take years. Admittedly, existing mines that are producing can tap previously unavailable veins when prices appreciate rapidly, so figuring this all out can be like solving a Rubik's cube.

I did find the 517:1 paper to physical silver ratio mentioned in the article (footnote area) quite interesting.

I want to add another random tidbit- I didn't read this anywhere- it is just my own speculation. There have been a lots of Chinese buyers of real estate in the Vancouver, BC area- so much so that last August they added a special tax to purchases of homes in the area. There are lots and lots of precious metals miners HQ'ed in Vancouver. I wonder if some of the higher dollar buyers might have picked Vancouver because it would be a more friendly place to stash large quantities of PM's than China. Hmmm....

[johnbrickner]

Love the opening paragraph of his topic and the propaganda affect intended. You gotta love those Russian's and their propaganda machine. Especially given what appears to be the high degree of truth behind it.

"The end of the world's present monetary system is already taking place. The clearest symptom is the frantic bellicosity of the US, propelled by the perception on the part of those who run the US, that the US is losing influence in the world, and that their deep-seated objective for control of the whole world is slipping out of their hands. The end of the dollar as the basis of the international monetary system means the end of the US as we have known it."

From the above.

[Market Harmony]

10 largest silver producers:

https://www.thebalance.com/the-10-bigge ... rs-2340234

[everything]

I'm not buying the price jump theory, mining is competitive, someone will fill the void, and silver is way closer to the price of copper than it is gold, many who stack only gold will refer to silver as a base metal. Since they have so much silver they could be trading it for gold instead, but I agree with the silver reserve idea, why not, can't hurt.

[Recyclersteve]

10 largest silver producers:

https://www.thebalance.com/the-10-bigge ... rs-2340234

A Polish company is number one on the list. I have to admit that I never thought of Poland as a country rich in base or precious metals (a la Canada, Russia, Mexico, Peru, South Africa and, of course, the U.S.).