Posted by rahrens_1 on October 11th 2011 at 11:43 am
The focus of the article below is basically about peak silver, but really is about peak anything that is dependent on cheap energy. This will basically be just on of many side effects of peak oil. It goes into great detail and shows that the falling Energy Returned On Invested – EROI from oil has gone from 100:1 down to about 18:1 in 2006. Meaning 18 barrels of oil where output for every 1 barrel used as input. Shale oil is apparently about 5:1 and tar sands are anywhere from 2-4:1.
The article looks at the impact on silver production this will indirectly have and the author see’s a 20-40% drop in silver production going forward. He also points out that if Mexico reintroduce the Silver Libertad as legal tender to compete with the Peso the problem will only get worse.
Make your own judgements but this would all seem to bode well long term for silver miners where silver is the primary output even with the weakness in these stocks lately.
See full report here.