I’m not an expert on silver mining. But I suppose there must be many silver mines that are closed because it is not profitable to work them.
Wouldn’t the rising price of silver cause these mines to re-open? Then more silver enters the market. Then the old Supply and Demand thing takes over.
I have a limited knowledge about silver mining. I believe silver is a byproduct of copper mining as well as unique silver mines.
Minors gonna be more likely to drag their feet, with expectations of $200/oz
I do know that silver is not often the main reason for any particular mine - zinc and other mines get silver as a secondary result. I think Mexico might have primary silver mines but other types are more common.
I am a mining engineer. Increasing silver production is not like a factory increasing production of a manufactured product to meet demand. Most silver (about 75% to 80%) is produced as a by-product of copper, zinc and lead mining. Processing capacity to vastly increase capacity to produce silver is likely not on stand-by awaiting a surge in demand. Environmental regulations make any changes to operations a slow process. Many mines are in Mexico or other countries beyond USA control. Government instability and labor demands (strikes) can cripple a mine and wreak havoc on production goals.