# Silver Value Chain Silver flows through four stages from ground to end use. Each stage has specific chokepoints. ## The Four Stages **Mining**: Primary mines (29%) respond to silver prices. Byproduct (71%) from copper, zinc, lead mines [[Byproduct Silver Problem|cannot increase output even if silver doubles]]. **Refining**: Takes doré bars (95% pure) and refines to .999 fine (industrial) or .9999 fine (investment). [[Silver Refining Chokepoint|China refines 60-70% of global output]] despite producing only 13% of mine supply. **Distribution**: Major physical markets in London (LBMA), New York (COMEX), Shanghai (SGE). COMEX stores ~300M oz, LBMA ~900M oz. **End Use**: [[Silver Industrial Demand|Industrial (85%)]]: solar, electronics, automotive, medical. [[Silver Investment Demand|Investment (15%)]]: coins, bars, ETFs. ## The Critical Flow Peruvian mine → doré bar → ship to China → refinery → .999 bar → ship to US → manufacturer This flow broke January 1, 2026 with [[China Silver Export Restrictions 2026]]. Western refining capacity atrophied over 20 years. [[Silver Refining Chokepoint|You cannot rebuild a refinery in under 3-5 years]]. Links: [[Silver MOC]] | [[Silver Refining Chokepoint]] --- #silver #firstprinciple #systems