CHANGES IN PRACTICE
It is doubtful if silver production will be materially increased in the next few years by improvement in metallurgy, milling, or mining methods. Silver production is perhaps unique in that a great part of the output, produced as a by-product, comes on the market at a rate determined more by the volume of lead and copper production than by current quotations for silver. Also rich silver mines when discovered can be operated at a large profit per ounce. However, high prices for silver will stimulate that part of the production which comes from silver mines proper.
The world’s production increased over one-third during the period of 1904 to 1913. At the same time prices had declined even below the 1893-1894 figures. The increased output was due to production from the United States and from Canada.
Independent of price, the Cobalt discovery poured silver on the market. Independent of price, the increased lead and copper of the United States poured by-product silver on the market.
It seems clear that discoveries of new silver deposits or enlarged and improved base-metal mining operations are the factors that will influence silver output. Changes in methods of silver recovery and even changed silver prices have no tremendous effect. Even the big drop in silver prices in the early nineties was accompanied by no decrease in silver production. Instead there was an increase.