COVID-19 shutdowns dealt silver mining a harder blow than any other major mining sector worldwide.
A GlobalData report found that as of April 27, 2020, an equivalent of 65.8% of annual global silver production sat on hold — the largest proportional shutdown recorded across all metals the research firm analyzed.
Gold, by contrast, saw just 9% of production disrupted, making silver and gold the two extremes of a wide spectrum of pandemic-driven supply losses.
How Did COVID-19 Affect Global Silver Mining Production?
Governments across the world ordered closures of non-essential businesses, and mining operations — particularly in Latin America — fell within those restrictions.
GlobalData recorded temporary shutdowns introduced by over 1,600 mines across 32 countries as of April 3, 2020.
That figure fell to 729 as lockdown measures began easing, but mines still operating at that point ran at reduced capacity, with operators limiting the number of workers on site to slow the spread of COVID-19.
Silver felt the impact most acutely because its largest producing regions — Mexico, Peru, and Bolivia — all implemented strict government mandated shutdowns that targeted mining directly.
Which Silver Mining Companies Withdrew Production Guidance Because of COVID-19?
Several major silver producers pulled their production guidance as the scale of the shutdowns became clear.
Hochschild Mining, First Majestic Silver, Hecla Mining, and Endeavour Silver all withdrew guidance during the period.
Each company carried significant exposure to Latin American operations — the region where government ordered closures ran longest and cut deepest into planned output.
The withdrawal of guidance across four major producers simultaneously sent a clear signal to markets that the supply disruption was not a short-term inconvenience but a material production event.
How Does Silver Compare to Other Metals in COVID-19 Production Losses?
GlobalData Senior Mining Analyst Vinneth Bajaj laid out the full picture across commodity sectors.
Silver led all metals with 65.8% of annual global production on hold. Uranium came second at 32%. Zinc followed at 23.8%.
Platinum recorded 19.5% of production disrupted. Nickel sat at 14.6% and diamonds at 14.4%.
Copper saw 12.7% of output halted, lead 12%, manganese 10%, and gold just 9%.
The gap between silver at the top and gold at the bottom reflects the geographic concentration of silver production in jurisdictions that implemented the strictest pandemic restrictions, while gold production remained more distributed across regions with lighter lockdown measures.
Which Countries Still Had Lockdowns Affecting Silver Mines?
As of late April 2020, lockdowns remained in place across the key silver producing nations of Latin America and beyond.
Mexico maintained restrictions until May 30. Peru held lockdown measures until May 10. Bolivia extended its shutdown until April 30. Namibia remained under restrictions until May 4.
These four jurisdictions together account for a substantial share of global silver mine supply, and the extended duration of their lockdowns compounded the cumulative output loss well beyond what a short disruption would have caused.
The shifting policy environment in mining jurisdictions more broadly is examined in our coverage of how public mining policy is changing across major producing countries.
How Much Silver Output Did Mine Closures Actually Cost?
CPM Group ran the numbers in its Silver Yearbook 2020 and arrived at a sobering estimate.
Based on the duration of mine closures and the daily output rates recorded in 2019, closures in South Africa, Mexico, and Peru alone cost at least 21.1 million ounces of silver production.
“At the minimum, based on the current duration of mine closures and the daily output in 2019, the mine closures in South Africa, Mexico and Peru should result in lost output of about 21.1 million ounces of silver,” CPM Group stated.
That volume represents a meaningful tightening of physical silver supply at a moment when investment demand was already rising sharply as investors moved toward precious metals amid economic uncertainty.
What Is the Silver Price Outlook After COVID-19 Shutdowns?
Panic selling during the early stages of the COVID-19 crisis dragged silver prices to 11-year lows in March 2020.
The metal recovered from those lows but remained below its February 2020 highs in late April. Spot silver last traded at $15.16, up 0.07% on the day, while May silver Comex futures last traded at $15.25, up 0.52%.
Analysts at Orchid Research argued that silver’s relatively healthier speculative positioning compared to gold, combined with a historically elevated gold to silver ratio, set the stage for silver to catch up and outperform gold in the coming months.
The broader metals trade environment, including how tariff and trade policy shapes precious metals pricing, is analyzed in our coverage of the Trump China metals rally and its implications.
Why Do Analysts Call Silver the New Infrastructure Precious Metal?
While gold attracted most of the macro investment attention, several leading analysts argued that silver offered a distinct and underappreciated opportunity rooted in industrial demand rather than monetary function alone.
Colin Hamilton, head of commodities research at BMO Capital Markets, made the case directly in an April 2020 report.
“While gold naturally gets most of the attention in a macro environment of competitive monetary support, we feel there’s an opportunity emerging in silver. As governments seek to further bolster economic recovery, we expect silver-intensive areas such as 5G and solar technologies may well benefit from any fiscal impulse, making silver increasingly the ‘infrastructure’ precious metal,” Hamilton wrote.
The case rests on silver’s irreplaceable role in electronics, solar panel manufacturing, and emerging 5G infrastructure — sectors positioned to capture a large share of government stimulus spending in the recovery phase. Our analysis of how AI and energy infrastructure are reshaping commodity demand captures the longer arc of this technology driven demand shift.
Wheaton Precious Metals CEO Randy Smallwood reinforced the fundamental case in an interview with Kitco News.
“The fundamentals behind silver are as good as I’ve ever observed. The industrial need and its usage are significant to the society together with its high efficiency in electronics and its antibacterial applications and also solar panels,” Smallwood said.
The combination of supply disruption, a historically wide gold to silver ratio, and building industrial demand for silver in technology and clean energy applications gave analysts confidence that silver’s lagging performance against gold through early 2020 represented an opportunity rather than a structural weakness.
Frequently Asked Questions
How did COVID-19 affect global silver mining production?
COVID-19 shutdowns put 65.8% of annual global silver production on hold as of April 27, 2020, making silver the worst affected of all major mining sectors analyzed by GlobalData. Over 1,600 mines across 32 countries introduced temporary shutdowns, with Mexico, Peru, and Bolivia among the hardest hit producing nations. Mines that remained open ran at reduced capacity to limit workers on site.
Which silver mining companies withdrew production guidance because of COVID-19?
Hochschild Mining, First Majestic Silver, Hecla Mining, and Endeavour Silver all withdrew production guidance during the COVID-19 shutdown period. Each had significant exposure to Latin American operations where government ordered mine closures lasted the longest and cut deepest into planned annual output.
How does silver compare to other metals in COVID-19 production losses?
Silver recorded the highest production loss at 65.8%, followed by uranium at 32%, zinc at 23.8%, platinum at 19.5%, nickel at 14.6%, diamonds at 14.4%, copper at 12.7%, lead at 12%, manganese at 10%, and gold at 9%. Gold was the least affected major mining sector; silver was the most affected by a significant margin.
How much silver output did mine closures cost?
CPM Group estimated a minimum of 21.1 million ounces of silver output lost from closures in South Africa, Mexico, and Peru, based on closure durations and 2019 daily production rates. This figure was published in the Silver Yearbook 2020 and represented a meaningful tightening of physical silver supply during a period of rising investment demand.
What is the silver price outlook after COVID-19?
Silver fell to 11-year lows in March 2020 before recovering. Analysts at Orchid Research highlighted the historically wide gold to silver ratio and healthy speculative positioning as signals that silver could outperform gold in the coming months. BMO Capital Markets identified 5G and solar technology spending as the key demand catalysts for silver’s recovery and longer term repricing.
Why do analysts call silver the infrastructure precious metal?
Silver plays an essential role in 5G telecommunications equipment, solar panel manufacturing, electronics, and antibacterial applications — all sectors expected to receive major government stimulus investment in the post-pandemic recovery. BMO Capital Markets coined the term “infrastructure precious metal” to capture silver’s unique position as both a monetary asset and an indispensable industrial input in the clean energy and digital economy transition.
