In April last year the price of silver peaked at US$49 a troy ounce.  Currently the spot price of a troy kilo of silver is around NZ$1214 – an increase in the silver price of over 100% cent in the past five years.

This increase in the price of silver is due to a shrinking supply of silver around the world.  And this silver supply is set to shrink slightly further due to an announcement by the Mining Health and Safety Administration in the US.  The Administration has ordered the temporary closure of the silver shaft at the Lucky Friday silver mine in Mullan, Idaho.

The silver mine, owned by Hecla Mining Company, will be closed for maintenance and cleaning until early 2013.  Over time, sand and concrete material has built up in the silver mine and must be removed by power cleaning to prevent future hazards.

After the announcement the silver miner’s share price dropped 21% which lead to fund managers speculating that Hecla, the United States’ largest silver supplier, could be vulnerable to takeover bids.

It’s estimated that an inability to mine silver from Lucky Friday will lessen the companies’ 2012 silver output by about 25%, from 9 million ounces of silver to 7.5 million ounces of silver.

According to the company the financial impact of the silver mine closure will be minimal but it will delay the mining of higher grade silver that sits deeper in the silver mine.

Jobs will also be affected with 200 employees potentially out of work.  Hecla hoped that around 50 workers will be transferred to it’s other major silver mine in Alaska and to two silver exploration sites in Colorado and Idaho.

It’s not the only disruption to the mining of silver and gold around the world either.  In Kyrgyzstan (a mountainous country near Kazahkstan), drilling for a new gold mine was suspended after an arson attack on the gold mining company’s geologist camp by horsemen wielding sticks and petrol bombs.

The conflict has since been resolved with an agreement signed between the gold mining company and local villagers.  Once the gold mine is operational and jobs are created, locals will be given priority, and land-owners will be compensated for any damage that may occur.

Whatever happens in the world of gold and silver, you can be assured that EzyCash Gold Buyers will give you a top cash price for gold jewellery and silver jewellery, all kinds of broken or scrap silver and gold as well as luxury watches and diamonds.  Bring it in for an expert evaluation to our store in Panmure, Auckland.

The post Mining Gold and Silver isn’t an Easy Job appeared first on EzyCash Gold Buyers.