As we all know, the price of silver is at near record highs and...

As we all know, the price of silver is at near record highs and shows no signs of retreating.

According to an article in the current Gold Mining Journal, 709.6 moz of silver was mined in 2009 and just over production came from the Americas, with Peru * Mexico being the largest.

Only 30% of silver comes from primary silver mines.

Industrial usage accounts for more than 50% of demand, jewellery was next (18%), coins and silverware 10% and photography was third with 9%. Silvers use in photography is declining due to the growth in digital cameras.

Between 2003 & 2006, the demand for silver grew by 6% per year, but demanded dropped back in 2008 (GFC).

CEO of Hecla Mining Phillips Baker was recently qouted as saying "We exepect to see it grow at an even faster rate now". Baker also stated that customers were building up inventories again.

Hecla mining produced 11moz of silver last year, so no small fish.

In its annual survey, the Silver Institute tipped mine production to increase slightly in 2010 but said that supply would be offset by further declines in sliver scrap and government sales.

The last week has seen the AYN SP flat. The CR ann has been made and both SVL and CCU are also cap raising (CCU completed, SVL underway).

I would love to see the CR finalised and the revised JORC out before christmas.

AYN management has the perfect storm brewing (high silver prices, demand out weighs supply, JP Morgans silver position, first AUST silver miner back into production, etc).

Will management be able to get everything organised and get the SP moving in the same price as silver? I hope so.

On other threads, other HC posters have mentioned that there are 3 pure silver plays. Also, have a look at MAR.

They are not a pure silver play but their conrad silver project looks interesting. The best intersection hit was 1.6m @ 819 g/t silver...