Why the ‘silver rush’ may be ending in California
Posted On July 17, 2021
The ‘silver surge’ has been a myth for a long time, but that’s about to change.
The silver mines of southern California are once again seeing their prices plummet, according to an Associated Press article.
The news comes after a report from the San Francisco Chronicle that found that California’s copper mine, the Alaskan copper mine and a small chunk of gold mining in Alaska had all dropped to below $10 a tonne.
The mining boom has also caused the cost of aluminum to fall by a third, according the AP.
Alaskans are still able to buy aluminum, but prices are down 15 percent compared to a year ago, and the state is now the second-most expensive state for aluminum production in the country behind only Arizona, according a 2014 study by the Center for International Policy at the Brookings Institution.
Gold mining in the San Andreas Basin in northern California has also dropped.
The gold miners in that region have been struggling to survive.
The Los Angeles Times reported in November that the gold mining industry in the region is struggling to keep up with the mining demand for gold and other metals.
“It’s a lot more difficult than we thought it was going to be,” said Peter Sivak, the director of operations for the San Pablo Gold Mining Company, which owns the mines in Los Angeles and Santa Barbara counties.
The mines have also been hit hard by the gold rush in China.
The Associated Press reported last year that China’s gold demand for the U.S. and other countries was “the largest since the 1970s.”
As a result, China’s government has taken measures to control the amount of gold mined in its own country.
China’s president has ordered China’s mining companies to invest in mines and to “restore confidence” in the economy, according China Daily, the state-run newspaper of China.
“There is no doubt that this is a crisis,” the Associated Press quoted Wang Xiang, a professor of economics at the University of California, Los Angeles, as saying at the time.
“They’re trying to create the conditions that are conducive to the recovery of the economy and the stabilization of the world economy.”
Gold mining is a relatively new industry in California, but the AP report noted that the industry was the third-largest in the state last year.