Mexico is the world’s largest silver producing country, while Peru, on the other hand, has the largest known reserves of silver.
Silver remains in the news. Silver crossed the mark of Rs 4 lakh per kg for the first time. However, later the prices also declined. A debate has started in the world as to which country has the largest reserves of silver? The general answer one can think would be America, China, Russia etc. But, this is not true at all.
If big and powerful countries do not have the largest reserves then who is the silver king? Why and how was it possible that small countries moved ahead and powerful countries remained silent? Let us know.
Silver economy is because of Peru-Mexico
Whenever there is talk of global mineral resources, the names of countries like China, America or Russia often come to the fore. But in the case of silver the story is completely different. Peru and Mexico are two countries that have shaped the world’s silver economy for centuries. On one hand, Mexico is the world’s largest silver producing country, while on the other hand, Peru has the largest known reserve of silver. This situation is not a coincidence, but the result of history, geography, geological structure and economic policies.
Why is everyone’s eye on silver?
Silver is not a metal limited only to jewelery or coins. Today it is being used extensively in solar panels, electronics, medical equipment, batteries, green energy technology. This is the reason why silver is now considered a strategic metal. Earlier it was used only in the form of coins and jewellery. Industry and science gradually increased its shine. Today it has become a need of the whole world. Therefore the demand increased and the prices are also rising.
Mexico, the world’s largest silver producer
The history of silver mining in Mexico begins in the 16th century, when Spanish colonizers discovered vast silver veins in areas such as Zacatecas, Guanahuato and Chihuahua. Mexico has been the world’s number-1 silver producer for the last decade continuously. Mexico alone contributes more than 20 percent of global silver production.
Questions often arise that why was so much production possible here? So the answer comes that there are many reasons behind this. Strong silver belt like Andes, state-of-the-art mining technology, favorable policies for private and foreign companies and strong mining infrastructure. The major mining areas of Mexico are Zacatecas, Durango, Chihuahua and Guanajuato. Mining continues on a large scale in these areas even today.
Peru, the country with the largest reserve of silver
Peru is first not in silver production but in storage. This country ranks second or third in production, but in terms of known silver reserves it is number-1 in the world. This means that the silver which is present under the ground and which can be extracted technically and economically in the future.
Peru has such a large quantity of silver that it can affect the global supply for many decades to come. Actually Peru is situated on the Andes mountain range. The rocks here are polymetallic, that is, along with silver, zinc, lead and copper are also found. This is why silver is often found here as a by-product.
Why are China and America lagging behind?
Now the question arises that why are powerful countries China and America lagging behind? Actually, China’s focus is mainly on rare earth metals and industrial metals. Silver production is possible here but silver has not yet become a priority for China. There is silver in America too, but mining costs are high and environmental regulations are strict. In such a situation, many mines have been closed or limited. For this reason both these countries lag behind in the silver race.
How did Perumexico’s dominance become possible?
When the world tries to know how Peru-Mexico achieved this feat, it does not get a flat answer. There are many reasons for this. Mexico has been engaged in this work for five hundred years and Peru for three hundred years. It was discovered during the colonial period itself. A large part of the economy is dependent on mining. The Andes mountain range is known as the Silver Belt. Foreigners have invested here in this area. All these factors together made Peru and Mexico the global center of silver.
What will be the role in future?
In the future, due to the expansion of green energy and solar sectors, the demand for silver is going to increase rapidly. In such a situation, both Peru’s huge reserves and Mexico’s production capacity will prove to be decisive for the global economy. It is possible that in the coming years they will be seen as an influential player like Silver OPEC.
While the world keeps an eye on the industrial power of China and America, the real power of silver lies in the hands of Peru and Mexico. One country is the owner of the treasure sitting under the ground, while the other is continuously sending it to the world. This is the reason why neither China nor America – the real kings of silver are Peru and Mexico.
Also read: China will beat the US dollar! How does a currency become a global currency, how many difficulties does Dragon face?