Chilean Copper producer experiences shortfall… is there a silver connection?
I just read an article about the Chilean copper miner, Codelco, who is going to be unable to reach it's contractual quotas for it's copper customers. The article talks about 'unspecified' problems at one of it's smelters... or was there perhaps more going on here? As many of us know, Silver is a byproduct of the copper mining industry and copper mining directly. It isn't very hard to draw a conclusion that IF there is a shortage in copper at this mine (for whatever the reason) there will also be reduced output in it's silver ore.
You've probably noticed countries like China stockpiling copper. Let's say this 'global slowdown' really gets more traction. What then would happen to future contracts for copper mining? Would they not be reduced by sheer lack of demand (especially if places like China are already sitting on some serious stockpiles)? The reduction in copper mining would also directly impact the availability of silver for industry and all of those that are busy accumulating it quietly right now.
This story is definitely worth investigating and observing as more information becomes available.
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