Silver has captivated the hearts and minds of people for centuries, serving as a store of value, a medium of exchange, and a symbol of wealth and prestige.
But have you ever wondered just how much silver is out there, waiting to be discovered or put to use?
Enter Jeffrey Christian and the team at CPM Group, who have been diligently tracking silver inventories for nearly half a century.
In this blog post, we’ll explore their findings and shed light on some common misconceptions surrounding the silver market.
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- Approximately 60 billion ounces of silver have been mined throughout history, with only about half being identifiable and recoverable.
- CPM Group estimates that around 5.5 billion ounces of silver are currently held in above-ground inventories, primarily in the form of bullion bars, coins, and exchange-traded products.
- The Silver Institute’s World Silver Survey may present a more bullish outlook on the silver market by including investment demand in deficit calculations, while CPM Group’s methodology focuses on the balance between refined production and fabrication demand.
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The Truth About Silver: How Much Is Really Out There?
Historically, 60 billion ounces of silver have been mined, with half of it being potentially recoverable.
That’s enough to make even the most ambitious treasure hunter’s heart skip a beat!
The majority of this silver has been extracted since 1800, thanks to the diligent record-keeping of organized mining companies and countries.
The rest is scattered across the globe, hidden in plain sight as jewelry, decorative objects, and religious artifacts.
So, just how much silver is in above-ground inventories, waiting to be used or admired by collectors?
CPM Group estimates that around 5.5 billion ounces of silver are currently held in refined silver bullion bars and coins worldwide.
That’s like having a silver stash that could fill over 300 Olympic-sized swimming pools!
And let’s not forget the nearly one billion ounces of silver held in exchange-traded products, which have been gaining popularity since 2005.
The US Treasury once controlled the silver market, with a staggering 3.3 billion ounces of silver in its vaults at its peak in the 1940s.
During World War II, the Manhattan Project “borrowed” 14,046 million ounces of silver from the Treasury for early nuclear fission experiments.
Why? Because copper, the preferred metal, was in high demand for the war effort.
Talk about a silver lining!
To truly understand the state of the silver market, CPM Group calculates the surpluses and deficits by looking at total refined production from mines and scrap and then subtracting fabrication demand.
The World Silver Survey, which includes investment demand in its calculations, can lead to a more bullish view of the silver market.
However, it’s essential to remember that investment demand adds to, rather than subtracts from, above-ground stocks.
In summary, CPM Group estimates that around 5.5 billion ounces of silver are waiting to be used or admired in above-ground inventories, with investors holding most of it.
Understanding accurate data and analysis is crucial when making investment decisions in the silver market.
With this knowledge, investors can confidently and clearly navigate the fascinating world of silver. Subscribe to our daily newsletter.
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