-- Posted 4 January, 2006 | | Source: SilverSeek.com

What we're looking at here is information snipped from the Silver Institute web site.  The intent before you is to prompt focus on the sources of the 70% of world annual silver production that comes as a by-product of other metals mining. Copper mining gives us 26% of our world silver. Silver "gurus" should be on top of the developing labor strife at the Codelco mine in Chile, the world's largest copper mine. Albeit under 10M/oz of annual silver production originates with Codelco, labor disruptions could spread to other copper mines throughout the world. Labor unrest has always been symptomatic of disintegrating monetary systems. As it is, Chile is the 6th largest silver-producing country in the world - responsible for 2004 silver production of just under 43M/ozs. Note that many of these countries are in geo-politically unstable parts of our world. 

We are in a frantic world scramble where each country (government) is taking huge steps to assure its sources of raw commodities are secure. Let's try and think this thru.  

Back towards the end of the Arab oil embargo in the 70's, it was widely believed that Iran had negotiated an oil-for-gold deal with pre-Marxist South Africa. To my knowledge it never developed, but it was on the table. Today, South African gold miners must sell their production through the SA government. This amounts to a de facto socializing of SA gold mining, and we wonder how these policies have  discouraged investment in SA mining shares (apart from the strong SA rand). Now, it's widely speculated that Russia has been adding to their gold reserves by "buying" their own domestically mined gold. It never hits the gold trading bourses around the world. Russia produces 38M/ozs of silver, could they apply the same strategy here? Platinum? Uranium? Pick your own country below and do the math. Can you really believe China couldn't come up with the necessary 200,000 tons of copper to make up the short by one of the trading houses? Maybe so, but just like their Conoco bid for oil, China is lining up their ducks to safeguard and add to their natural resources. Our own grab for world resources is underway through the gunboat diplomacy of the US Navy's Sixth Fleet.

I mean, hey, we are teetering on the brink of losing our strategically dominant political and economic perch in the world. Bush-the-Elder wasn't kidding when he said we are entering a New World Order. The guillotine awaits those toppled from power. Other governments see it. What if Venezuela's Chavez negotiated oil-for-silver(gold) deals with friendly neighbors such as Mexico?

The ultimate precipitate of all this 'commodity-for-this-'n-that' trading and negotiating is, in the aggregate, the de facto appearance on the world scene, a new world money standard. Quoted in US$'s, yes, but consummated in hard goods.

You economic newsletter writers need to sharpen your pencils, and do some fundamental research for your subscribers for which they pay you to do.

- - CV

Last Three Articles by Charleston Voice Silver on the See-Saw 22 September, 2007 Silver COTs & Barclays 17 September, 2007 Boil Them in Oil Over a Slow Fire 5 June, 2007 Charleston Voice - Article Archive List