Global silver production is projected to fall in 2016 by as much as 5% year-on-year as output from more mature operations begins to decline and the lower-price environment provides little incentive for producers to invest in expanding capacity at existing operations, noted a report by specialist commodity analyst the Silver Institute on Thursday. This would represent the first reduction to global silver mine production since 2002 and would likely continue through to 2019, forecast the report. Scrap supply, which had been on the decline for several years, would also weaken further in 2016 owing to additional losses in photographic scrap, a depleted pool of near-market silverware, jewellery and coins, as well as slowed scrap flows from industrial sources.
