Silver Refinery Bottleneck Adds to Market Uncertainty

Silver prices have been fluctuating, but according to Josh Phair, CEO of the Scottsdale Mint, there is still a significant bottleneck in the supply chain. Speaking on Mining.com's Top of Mine on September 23, Phair clarified that the problem lies not at the vaults where silver is stored, but rather at the refineries where it is processed.

The queue for refined silver is approximately 3-4 months long, with banks directing mined feed to plants in countries friendly to Washington. These plants have been congested for about a year, resulting in a backlog of incoming concentrate and doré waiting to be refined.

Phair emphasized that while there may not be enough refined silver available, there is still an ample supply of finished bars sitting in US inventory. He noted that this is not the same as saying the vaults are empty, but rather that there is a traffic jam on the way into the vault.