🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Gold shines but silver at 11-year highs and flying under investment radar

Published 21/05/2024, 02:15 pm
© Reuters.  Gold shines but silver at 11-year highs and flying under investment radar
XAU/USD
-
SI
-
TIOc1
-

It is understandable that gold is attracting strong attention with global economic patterns driving the safe-haven to record prices, however, silver is also at 11-year highs and is, as usual, flying under the investment radar.

Overnight silver futures surged 3.2% to a more-than-11-year high of US$32.285 an ounce and the past 12 months has seen an impressive rise in the silver price from a low of around US$20.90 to US$32.56 and there is no immediate sign of a slowdown.

A new report by UK-based The Gold Bullion Company highlights the production levels of silver on a country-by-country basis as well as the status of current reserves and potential shortages and compares the output with the height of buildings.

The report, which analyses each country’s silver production levels, says that silver production is estimated to grow by 4.1% throughout 2024 with this increase fuelled by the resumption and ramp-up of operations that were temporarily halted in 2023.

Mexico produces most

Mexico is way out in front on the list of silver producers with approximately 6,195 tonnes per year which is equal to 591 cubic metres in terms of height and this is almost the same as the Ping An International Finance Centre in Shenzhen, China.

China was in second place with 3,480 tonnes and Peru in third with just over 3,000 tonnes followed by Poland, Chile, Russia and Bolivia. Australia was eighth on 1,167 tonnes with the US in ninth and Argentina tenth.

Across the world, Poland is the country with the most silver in unexploited metal ore reserves, totalling around 170,000 tonnes with an estimated worth of approximately $136.1 billion.

This is followed by Peru and Australia in second and third place respectively.

Despite producing the most silver in the world, Mexico is the country closest to a critical shortage of the metal.

The country currently produces around 6,195 tonnes but with just 37,000 tonnes in reserves yet to be mined, it is estimated that Mexico will have a critical shortage of silver in just six years.

Australia top metals producer

The Gold Bullion Company study also outlines the production of gold, copper and other metals with managing director Rick Kanda stating: “Australia is the country producing the most metals overall, totalling almost 946.3 million tonnes. This is then followed by Brazil, which produces around 435.1 million tonnes of metals, and China, which produces approximately 278.1 million tonnes of metals.

“Australia also has the highest amount of metals in reserves yet to be mined, equaling almost 58.2 billion tonnes. This is again then followed by Brazil, which has around 34 billion tonnes of metals yet to be mined, and Russia, which has approximately 29.1 billion tonnes of metals in unmined reserves.”

In terms of industrial metals, Australia produces the most, equaling almost 946.3 million tonnes, including approximately 944 million tonnes of iron ore and 1.2 million tonnes of zinc.

Australia also has the most industrial metals in unmined reserves, totalling nearly 58.2 billion tonnes. The country is estimated to have around 58 billion tonnes of iron ore and 100 million tonnes of copper in unexploited metal ore reserves.

China produces the most gold, totalling approximately 375 tonnes. In terms of height, this is equal to 19 cubic metres. Also standing at 19 metres high is the Maravijaya Buddha monument in Naypyidaw, Myanmar - the world’s largest marble Buddha statue, weighing almost 5,300 tonnes.

Russia is second with 325 tonnes and Australia third with 314 million tonnes.

Australia has the most gold in unmined reserves, with an estimated value of approximately $832.5 billion.

Tanzania, China, Ghana and Mali are the countries closest to a critical shortage of gold. Tanzania is thought to have about 420 tonnes of gold in reserves yet to be mined. The country currently produces around 57 tonnes of gold.

China is estimated to have 1,000 tonnes of gold yet to be mined. Producing 375 tonnes a year, the country is estimated to be around eight years from a critical shortage.

Ghana produces around 127 tonnes a year and with 1,000 tonnes in reserves yet to be mined, the country is estimated to be eight years from a critical shortage.

Mali is in a similar situation - with around 800 tonnes of gold ore yet to be extracted in reserves and annual production levels of 102 tonnes, the nation could be around eight years from facing a critical shortage.

Copper

Chile produces the most copper, totalling approximately 5.3 million tonnes, which in terms of height is equal to 596,200 cubic metres, equaling more than 67 times the height of Mount Everest.

Across the world, Chile is the country with the most copper in unmined reserves, totalling around 190 million tonnes with an estimated worth of approximately $1.7 trillion.

Australia is producing the most iron, equaling approximately 590 million tonnes of steel. The country produces approximately 944 million tonnes of iron ore each year.

It takes around 1.6 tonnes of iron ore to produce one tonne of steel, which means that approximately 590 million tonnes of steel are made from Australia’s iron production.

Australia is the country with the most iron in reserves yet to be mined, totalling around 58 billion tonnes. The current value of iron per dry tonne is $110.47, which means that Australia’s iron production is estimated to be worth approximately $6.4 trillion.

Lithium

Again, Australia annually produces the most lithium, totalling approximately 74,700 tonnes, which is equal to almost 16 times the height of Mount Everest.

Chile has the most lithium in unmined reserves, totalling around 9.3 million tonnes with an estimated value of $149.2 billion.

Australia is the country closest to a critical shortage of lithium.

Despite producing the most lithium, Australia is the country closest to a critical shortage of the metal.

With just 6.2 million tonnes in unmined reserves, it is estimated that Australia will have a critical shortage of lithium in 83 years.

Other metals

As far as zinc is concerned, China produces the most with around 4 million tonnes while Australia is the country with the most zinc in unexploited metal ore reserves, totalling around 64 million tonnes and an estimated value of approximately $159.1 billion.

Indonesia produces the most nickel with approximately 1.6 million tonnes and also has the most nickel in reserves yet to be mined, totalling around 55 million tonnes with a worth of approximately $972.3 billion.

Methodology

For each metal, The Gold Bullion Company sourced the total weight produced in the most recent available year by each available country using US Geological Survey Mineral Commodity Summaries.

For gold production, it sourced global mine production and considered the amount of gold each country produces, measured in tonnes. These figures were rounded to whole numbers and the data was taken from December 31, 2022. All countries with a production level of 50 tonnes and above were included.

To view the entire report, visit https://www.thegoldbullion.co.uk/values-visualised/

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.