The chart illustrates a significant trend in the annual additions of silver mine capacity from 2013 to 2019. Following a peak in 2013, where the capacity reached 35 million ounces (Moz), there is a noticeable decline over the subsequent years. By 2014, the capacity had dropped to 25 Moz, and by 2015, it plummeted to just 5 Moz. This downward trend continued, with a slight recovery in 2016 to 15 Moz, but then it decreased again to 10 Moz in 2017 and further down to 5 Moz in both 2018 and the projected 2019. This pattern reflects the broader market dynamics, where the initial increase in capacity was driven by a surge in silver prices between 2010 and 2011. However, as prices stabilized and possibly declined, the incentive to expand capacity diminished, leading to the observed reduction. The data suggests that nearly all reserves at the largest silver mines have been in decline, indicating potential challenges for the industry in maintaining production levels. This trend could have implications for future silver supply and market prices, especially if demand remains steady or increases.
