14:16 | Lima, Sep. 20 (ANDINA).
Peru, Bolivia and Mexico are the three countries with the largest silver reserves, which together accounted for 85% of global silver production.
Silver does have one major difference from gold: only about 20% of silver output comes from primary silver production. Much of it is produced as a by-product of mining for other metals such as copper, lead, zinc and gold, ETF Daily News reported.
Even though silver is now mined globally, Latin America still plays a key role in the industry. In 2011, Mexico and Peru were the top producers, followed by China. According to the U.S. Geological Survey, the country with the most in-ground reserves of silver is still Peru (120,000 tons) which is followed surprisingly by Poland and then Australia.
Peru is at the center of the silver mining industry and has been for centuries. Some analysts even call it the “Saudi Arabia of silver” and rightly so. It produced nearly 110 million ounces of silver last year and is one of the few countries over the past decade to add to its silver reserves.
Fortunately for U.S.-based investors, there are a couple of easy ways to invest into Peru’s silver industry.
The first is through the precious metals mining company Compania de Minas Buenaventura SA ADR (NYSE:BVN).
Another interesting way to play Peru’s mining industry is through an ETF, the iShares MSCI All Peru Capped Index Fund.
Buenaventura is the top position in the fund at nearly 17%, and nearly 60% of the fund’s portfolio is invested in mining companies.
(END) INT/MOC
Published: 9/20/2012