From the Silver Institute:Net silver supply from above-ground stocks dropped by 86 percent to 20.2 Moz in 2009, driven mostly by the surge in net investment, higher de-hedging, lower government sales and a drop in scrap supply. With respect to scrap supply, 2009 saw a 6 percent decrease over 2008’s figure to a 13-year low of 165.7 Moz. This represented the third consecutive year of losses in the scrap category.
I’ve seen an article where a large amount of silver is used in electronics, and that it is not econmically feasible to reclaim that silver until silver reaches $ 50.00/oz.
Also, it is becoming very evident that supply is not reaching demand, the pace of which is being set by China and India, as they need silver for -—get ready-—electronics production-— and for strategic materials stockpiling.