8 Countries That Produce the Most Silver in the World

The 8 countries that produce the most silver in the world are benefiting heavily from the ever-growing demand for this all-purpose metal.

The silver industry still possesses huge potential for growth as the demand greatly exceeds the supply, causing a deficit to arise. This fact can easily be proven by figures: mine production in 2015 amounted to 886.7 million ounces while demand for the metal was estimated to be 1.17 billion ounces. However, the entire difference between these two numbers cannot be accounted for as the shortfall since scrap sales also contribute to the supply of silver to the amount of 146.1 million ounces, thus lessening the deficiency to around 130 million ounces.

Surprisingly enough, a huge percentage of the demand for silver originates from the solar industry, which is slowly grabbing hold of the economy. This demand is because of the fact that silver paste is commonly used in solar panels. However, since solar energy is a relatively new sector, its demand is obviously not as much as the jewelry, coins or silverware industry. It is, though, now being considered as a huge customer of silver producing companies when it was previously accounted for as an immaterial industry in the world of silver.

With the law of economics in play, the hike in demand may be a result of a fall in prices. That seems like a long shot though since the year-on-year decrease was barely 2 percent. Although experts say the demand graph will continue to show a rising trend, the forecast for 2016 says that silver supply will suffer. This negative outlook is because of the expected production cuts in copper and zinc, but it can only be confirmed once 2016 production estimates are released. Till then, it’s merely conjecture.

If you are interested, you might want to check our article on 8 Countries That Produce the Most Steel in the World and compare these two lists.

Another interesting thing to note about silver is that it is the cheapest and most abundant precious metal, making it easy to procure and a good option for investment. You can invest in silver bars, silver coins, silver medallions, options, anything really. The Silver Institute provides an extremely helpful list of outlets from where silver products are available if one wants to hold them for investment. The Institute has also issued a very comprehensive report titled “World Silver Survey 2016” from where we have extracted the following list of countries that produce the most silver in the world. These countries currently account for 75 percent of the total silver mine production in the world.

8. Poland

Mine Production in 2015: 41.5 million ounces

Three of the 10 biggest silver mines in the world (as per Mining-Technology) are located in Poland, contributing heavily to its huge silver production. These mines are the Polkowice-Sieroszowice mine, Lubin mine, and Rudna mine. Poland is also home to the second largest silver producing company namely KGHM Polska Miedsz.

7. Bolivia

Mine Production in 2015: 42 million ounces

Bolivia is neck and neck with Poland when it comes to silver production. Although Bolivia retained its spot as the seventh largest producer of silver in 2015, its production has decreased, giving Poland sufficient opportunity to overtake it.

6. Chile

Mine Production in 2015: 48.4 million ounces

Chile has moved down a spot in 2015, as opposed to 2014, with a sudden drop in its silver mine production, which is unfortunate since the nation is continuously taking measures to take its mining industry up a notch. It is of the opinion that the industry is currently not exploiting its full potential.

5. Australia

Mine Production in 2015: 50.3 million ounces

Cannington mine in Australia gives the country most of its silver. Discovered in 1990 by BHP Billiton PLC, this mine gave the country 22.2 million ounces of silver in 2015.

4. Russia

Mine Production in 2015: 50.5 million ounces

Russia has managed to move up the rankings in 2015, from the sixth spot to number 4, with its production increasing from 46.1 to 50.5 million ounces. Polymetal International PLC, the company that is the fifth largest in terms of silver production, is the biggest contributor of silver in the largest country in the world.

3. China

Mine Production in 2015: 109.1 million ounces

It’s hard to find a list of top countries that produce the most silver in the world without China in at least the top 3. Regardless of the product, China somehow always possesses the capability to outrun the competition. Although its production has faced a decline, coming down from 112.5 to 109.1 million ounces, Russia still has a long way to go to be able to touch the numbers China is currently dishing out.

2. Peru

Mine Production in 2015: 135.9 million ounces

Peru is believed to have a huge amount of silver reserves that still remain untouched. Even though the production generated by the country is impressive even at present, it is still expected to continue its upward trend in the future.

1. Mexico

Mine Production in 2015: 189.5 million ounces

Housing the world’s biggest silver mine and the largest silver producing company in the world, Mexico lands the number one spot on our list of 8 countries that produce the most silver in the world. Like Poland, Mexico has a total of three mines that are counted amongst the top ten biggest mines in the world.