Peak Prosperity Yesterday’s Underinvestment in Silver Mining Is Tomorrow’s Price Spike
Nov 19, 2025
David Russell, CEO of GoldCore and a seasoned precious metals analyst, delves into the dynamics of silver and gold markets. He highlights the consequences of decades of underinvestment in silver mining and how today's inflation affects recycling incentives. The discussion also covers the psychology behind retail demand spikes during price surges. Russell emphasizes the industrial demand for silver in technologies like solar energy and medical applications, while addressing the geopolitical implications of re-monetization and shifting central bank strategies.
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Long-Term Underinvestment In Silver Supply
- Silver has suffered years of underinvestment because low prices made new mines uneconomic and discouraged exploration.
- Mine supply is inelastic and new production can take many years due to permitting, prospecting, and environmental hurdles.
Silver Is Largely A Byproduct Metal
- Around 70% of silver is produced as a byproduct of other metal mines, making silver supply tied to copper and zinc economics.
- That linkage amplifies supply risk when base-metal projects stay uneconomic and underdeveloped.
Recycling Won't Fill The Gap At Today's Prices
- Recycling and investor sell-off are major supply sources but are highly price-dependent and have declined since the 1980s.
- Many historically recyclable sources (household silver, electronics) no longer return material economically at current prices.