Global Silver Supply Chain: Where the World's Reserves Are Concentrated

The white metal market revolves around a critical question: which nations control the future of silver supply? While production numbers grab headlines, silver reserves — the economically viable metal deposits a country can mine — tell a more compelling story about long-term supply security and emerging investment opportunities. Understanding reserve distribution is crucial, especially as the US and other developed economies compete for critical mineral resources.

The Reserve Powerhouses

Peru dominates with 140,000 metric tons, maintaining an unshakeable grip on global silver reserves. The country remains a production heavyweight, churning out 3,100 MT annually. The Antamina copper mine, operated by a consortium including BHP, Glencore, Teck Resources, and Mitsubishi, produces more silver than any other Peruvian asset. A $2 billion expansion approved recently will extend operations through 2036, signaling Peru’s commitment to long-term supply stability.

Russia holds second place with 92,000 MT of reserves, producing roughly 1,200 MT yearly. Despite geopolitical headwinds, Russian silver operations — particularly the emerging Prognoz mine in the Far East — are positioned to boost output by 5-7 million ounces annually once fully operational.

China’s 70,000 MT reserves place it third globally, with annual production of 3,300 MT. The country’s Ying Mining District, operated by Silvercorp Metals, recently upgraded facilities to handle over 1.3 million MT per year, underlining strategic investment in reserve development amid US-China competition for critical minerals.

Secondary Reserve Holders

Poland controls 61,000 MT, with KGHM Polska Miedź emerging as the world’s largest silver producer by output, generating 1,341 MT in 2024. The state-controlled company has positioned Poland as a critical player in global silver supply.

Mexico, despite ranking first in annual production, holds 37,000 MT in reserves. The country’s Peñasquito mine (Newmont) and Pitarrilla project (Endeavour Silver) represent massive underdeveloped resources, with over 491 million ounces awaiting development.

The Broader Picture

Beyond the top five, Australia (27,000 MT), Chile (26,000 MT), the United States (23,000 MT), and Bolivia (22,000 MT) maintain substantial reserves. The US strategic stockpile significance cannot be overlooked amid resource nationalism trends globally. Combined, all remaining countries hold 57,000 MT, bringing total global reserves to approximately 550,000 MT.

The concentration of reserves in Peru, Russia, and China underscores supply chain vulnerability, particularly as industrial demand for silver in renewable energy, electronics, and medical applications accelerates. Smart investors tracking emerging opportunities should monitor reserve-to-production ratios, as countries with untapped deposits may become tomorrow’s silver powerhouses.