Geomechanics.io

  • Free Tools
Sign UpLog In

Geomechanics.io

Geomechanics, Streamlined.

© 2026 Geomechanics.io. All rights reserved.

Geomechanics.io

CMRR-ioGEODB-ioHYDROGEO-ioQCDB-ioFree Tools & CalculatorsBlogLatest Industry News

Industries

MiningConstructionTunnelling

Company

Terms of UsePrivacy PolicyLinkedIn
    Projects

    Falling inventory behind silver price surge: supply deficit lens for mine planners

    December 11, 2025|

    Reviewed by Joe Ashwell

    Falling inventory behind silver price surge: supply deficit lens for mine planners

    First reported on MINING.com

    30 Second Briefing

    Silver prices have broken above $60/oz for the first time, with Sprott’s Paul Wong attributing the surge to a shrinking free-trading inventory and a forecast 125 million oz supply deficit in 2025, extending a cumulative shortfall to nearly 800 million oz since 2021. London vault stocks have fallen sharply from their 2021 peak, while global ETF holdings sit around 830 million oz versus 1 billion oz in 2021, leaving limited buffer if investment demand rebounds. Additional pressure comes from China’s strict silver export controls starting in 2026 and silver’s recent addition to the USGS critical minerals list.

    Technical Brief

    • Sprott attributes current price behaviour to “price convexity”, where marginal demand spikes prices as float shrinks.
    • Silver mine output plus recycling has been effectively flat for over a decade, per Sprott estimates.
    • Industrial offtake from solar PV and electronics is identified as the primary incremental demand driver stressing supply.
    • London vault inventories have fallen from a 2021 peak to a 2025 low, signalling impaired spot liquidity.
    • Arbitrage flows into New York, driven by tariff uncertainty, raise the risk of a localised COMEX-style squeeze.
    • USGS designation of silver as a critical mineral raises concern that US-held stocks may be ring‑fenced domestically.
    • Global silver ETFs currently hold ~830 Moz versus ~1,000 Moz in 2021, leaving latent “reloading” capacity if investors return.

    Our Take

    With silver above US$60/oz and a forecast 125Moz deficit in 2025, marginal primary silver and silver‑rich polymetallic projects in Peru and the USA move further into the money, which typically accelerates feasibility work and reserve conversion in our project-level coverage.

    The cumulative 800Moz deficit since 2021 versus 830Moz currently held in ETFs implies that, if investors maintain or grow positions, industrial users in Europe, China and the USA will be pushed towards longer-term offtake contracts and substitution studies, especially where silver is used in high-spec electronics and solar applications.

    China’s tighter export controls from 2026, combined with Peru’s role as the third‑largest copper producer, suggest more attention on silver by-product reporting and recovery optimisation at copper operations in our database, as operators seek to monetise silver credits in a structurally tighter market.

    Geotechnical Software for Modern Teams

    Centralise site data, logs, and lab results with GEODB-io, CMRR-io, and HYDROGEO-io.

    No credit card required.

    • Save and export unlimited calculations
    • Advanced data visualisation
    • Generate professional PDF reports
    • Cloud storage for all your projects

    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

    Related Articles

    Mining
    about 10 hours ago

    CITIC HIC semi-mobile crusher at Duobaoshan: design and throughput notes for mine planners

    A PSZ3000-B semi-mobile gyratory crushing station, independently designed and built by CITIC Heavy Industries in Luoyang, has completed no-load and load commissioning at Zijin Mining’s Phase II expansion of the Duobaoshan copper-molybdenum mine in Heilongjiang, with all performance indicators meeting design standards. The semi-mobile unit is configured as a primary crusher station for the expanded open pit, allowing truck-fed in-pit crushing with conveyor transfer to downstream processing. For mine planners and plant engineers, the successful commissioning confirms Chinese-built large semi-mobile gyratory technology as a viable option for high-throughput greenfield and brownfield expansions.

    Mining
    about 10 hours ago

    LEEA GLAD procurement survey: compliance and lifecycle insights for mine teams

    LEEA has launched a procurement-focused survey to feed into a new white paper scheduled for release on Global Lifting Awareness Day (GLAD) on 2 July 2026, with details hosted on the updated campaign site globalliftingawarenessday.com. Targeted at stakeholders who specify or purchase cranes, hoists, slings and other lifting accessories, the initiative centres on the theme “Not all lifting equipment is…”, aiming to capture how compliance, whole‑life cost and inspection regimes are currently weighted in buying decisions. Mining owners, EPCMs and contractors can use the findings to benchmark procurement practices against industry expectations and tightening safety standards.

    Mining
    about 10 hours ago

    Hitachi EH5000 100,000‑hour milestone at Lumwana: capex and fleet life notes for planners

    Three 296 t class Hitachi EH5000 rigid dump trucks at Barrick’s Lumwana copper mine in Zambia have each passed 100,000 operating hours, an unusually high lifecycle for ultra-class haulage equipment in hard-rock copper operations. The milestone, marked at a joint Barrick–Hitachi recognition ceremony, points to effective component rebuild strategies, condition-based maintenance and strong dealer support for the EH5000 fleet. For mine planners and maintenance teams, it signals potential to extend truck life beyond typical replacement cycles, with implications for capex timing and fleet renewal strategies.

    Related Industries & Products

    Mining

    Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.

    CMRR-io

    Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.

    HYDROGEO-io

    Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.

    GEODB-io

    Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.

    AllGeotechnicalMiningInfrastructureMaterialsHazardsEnvironmentalSoftwarePolicy