Mexico silver production- Interesting article
Posted: Sun Jul 30, 2017 11:28 amhttp://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."
"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."