Mine production of silver was flat in 2006 at 647.4 million ounces, but rose almost 4% in 2007 to 670.6 million ounces. Government sales in 2006 were 78.2 million ounces, mostle by the Chinese and Indians, but dropped to 42.3 million ounces in 2007, mostly by the Russians. Looks like the west is out of silver and the only ones with any left are asian contries. Photographic demand contines to drop, but industrial demand has been rising. Not sure, but industrial may drop in 2008 due to the recession. The big question is does Barclays really have 190 million ounces? It looks like Barclays scored Buffets 130 million ounces but I suspect they may be leasing their silver. I have more confidence that Comex really has what it says since that metal is fully piad for and can be delivered to all owners as opposed to Baclays siver trust which can only be removed by the big owners.

If you look at mine production of silver over the last 30 years it has had to more than double to keep up with demand despite the fact that governments have been selling due to removal of silver from circulation mainly back in the 1960's. Evetually and probably soon the Asian governments will run out of silver too. Eventially mine production will not be able to increase enough too keep up with demand which has grown an average of 12 million ounces per year over the past 25 years. Price is going to have to increase to ration silver when the miners hit the wall. I think that supply is a problem now but its is going to be extremely criticle within 10 to 20 years. The price rise has also already caused some rationing of silver as jewlery demand in India has dropped significantly. Regards.