Then again, might just be a supply-demand issue - Economics 101?...

Then again, might just be a supply-demand issue - Economics 101? The following from CSIRO is re Au but applies equally to Ag, IMO.

21st century gold - CSIRO

New gold discoveries are needed to secure future production

Mining is a non-renewable industry and so every ounce produced must be replaced through new discoveries to sustain production.

“Unlike many other commodities, such as base metals and bulk minerals, the typical life expectancy of a gold mine is relatively short at 10 to 15 years at most,” MinEx Consulting managing director, Richard Schodde, says.

“In contrast, copper and iron ore mines typically operate for two-to-three times longer.

“Given that the average delay between discovery and mine development is around 13 years – and getting longer over time – when a company builds a mine it effectively has to immediately start to find its replacement.”

Mr Schodde is worried that if companies start reducing exploration investment, new discoveries will take longer, meaning companies won’t be able to sustain production.

This would have profound implications for the sustainability of the industry and Australia’s future prosperity in the longer term.

“Unit discovery costs have been progressively rising over time and are estimated to be around $US45 per ounce in 2017, which is almost double what it was in 2007 at $US23 per ounce,” he says.

Based on historical trends, Mr Schodde forecasts that costs will continue to rise at $US10 per ounce per decade meaning the outlook for production and profitability will be a growing challenge.