This Is Why Now Is The Time To Buy Silver Stocks

In September silver production in the United States decreased 20% against last year. Only 82,6 metric tons of silver were mined versus 103 tons during September of last year. And it seems this is not a onetime mistake, it seem to become a trend.

In the beginning of the year silver production outpaced production numbers of 2014. But in April the trend reversed. While last year silver production increased towards year end, this year silver production is decreasing and at a rapid pace. This means great thing can happen to silver stocks in 2016.

Silver is mostly mined as a by-product to other commodities like gold, but also like zinc, iron ore, copper, … Big commodity producers are cutting expenses and projects because of the gravity of the bear market. As they are forced to suspend or shutter operations, silver production is going to fall even lower.

When this trend proceeds – and nothing says it won’t – production level in 2015 can be 30% lower than last year. Production level is decreasing while the demand for silver is increasing:

The decline in silver supply is probably not going to be a short-term phenomenon. Not only is current production impacted as miners shut down operations, but future production is also impacted as exploration budgets are slashed.

Silver stocks are cheap

When the silver price drifts higher, margins for silver producers are going to explode. The severely undervalued silver mining stocks could gain 200% to 400% in the next bull market.

Lots of investors are waiting on the sideline for the first signs the silver market is turning. This sign may be the catalyst that wakes everybody. But don’t wait until things get better, than you probably have missed the biggest gains.