Silver Mines Vanishing Warns CEO: $300 Price This Cycle | Glenn Jessome
TL;DR
Silver Tiger Metals CEO Glenn Jessome warns that primary silver mines are vanishing (from 52 to 38 operational), creating a severe supply deficit against booming tech and defense demand. With the US newly designating silver as a critical mineral amid Chinese supply chain weaponization, Jessome predicts structurally higher prices, potentially reaching $300 this cycle, while his company's El Tigre mine prepares to become one of the only new primary silver producers in 2027.
⛏️ The Collapsing Silver Supply 3 insights
Primary silver mines vanishing rapidly
Operational primary silver mines are collapsing from 52 last year to 46 this year and just 38 next year, with only one new mine scheduled to start production in 2027.
Supply deficit widening dangerously
Global silver production is approximately 800 million ounces annually while demand has reached 1.2 billion ounces, creating a structural deficit that cannot be filled by existing operations.
Mining industry self-destructing
The silver mining industry effectively mines itself out of business every 10-15 years without constant new discoveries, yet major producers are not investing in expanded production despite high prices.
🌍 Geopolitical Weaponization 3 insights
US declares silver critical mineral
The United States designated silver as a critical mineral for the first time, recognizing it as essential for economic protection and strategic defense, particularly for missile technology and renewable energy.
China controls global silver smelting
China smelts 73% of the world's silver and recently imposed export restrictions on Mexican silver, creating a supply chain weapon that has forced the US to recognize silver's strategic vulnerability.
US building first smelter in 50 years
JP Morgan and the Department of Defense are jointly investing $8 billion to build the first US silver smelter in Tennessee in over 50 years, directly responding to Chinese supply chain dominance.
📱 Technology Demand Driver 3 insights
Tech industry price inelasticity
Technology giants building AI, electric vehicles, solar panels, and smartphones require silver inputs regardless of cost, as they cannot manufacture these products without the metal.
Defense applications surging
Missile technology and military hardware are among the largest and growing consumers of silver, further intensifying demand amid geopolitical tensions.
$300 price prediction this cycle
While Jessome emphasizes his company is profitable at sub-$20 silver, major shareholder Eric Sprott predicts prices could reach $300 this cycle due to the fundamental supply-demand imbalance.
🐯 Silver Tiger's Strategic Position 3 insights
El Tigre fully permitted in top jurisdiction
Silver Tiger's El Tigre project in Sonora, Mexico received the first surface mine permit issued in Mexico since 2019 and sits 100km from the US border in the world's top mining jurisdiction.
Production starting in 18 months
The company will begin production in approximately 18 months, becoming one of the only new primary silver mines to enter operation in 2027 as global supply collapses.
Ultra-low cost structure
El Tigre is profitable at sub-$20 silver with low capital expenditure requirements of just $100 million for phase one, backed by $100 million cash in the bank and institutional support from Franklin Templeton.
Bottom Line
The silver market is experiencing a fundamental structural shift where collapsing mine supply meets insatiable technology and defense demand, creating a prolonged bull market that makes low-cost producers like Silver Tiger Metals exceptionally valuable as the industry consolidates around critical mineral security.
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