3 Major Silver Refineries Just Shut Down | 68M Ounces Offline (Production Crisis)

3 Major Silver Refineries Just Shut Down | 68M Ounces Offline Production Crisis

68 million ounces of silver refining capacity just vanished. We break down the critical shutdowns at Johnson Matthey and Metalor and the dangerous "Two-Tier" market emerging in 2026. With physical premiums skyrocketing and vaults draining, are we heading for $200 silver or a total industrial supply collapse?
SOURCES & REFERENCES:
Global Silver Refining Capacity and Utilization:
Silver Institute data: Global refined production 843.7M oz 2025, refinery utilization rates 85%+ throughout 2025, representing near-maximum sustainable operation accounting for maintenance and product switching.
https://www.silverinstitute.org/silve...
Silver Refining Economics:
Treatment charges and refining fees: $0.50-$1.50/oz depending on feedstock type and product specifications. Energy costs representing 25-35% of operating expenses. UK/EU industrial electricity prices 40-60% above 2021 levels as of late 2025.
Industry sources and energy market data.
Feedstock Competition and Supply:
Large industrial users solar, automotive establishing direct mine offtake agreements, reducing material available to merchant refiners. Mine production growth 📈 1% annually. Recycling supply constrained by collection logistics and processing capacity despite elevated prices.
Industry analysis and supply chain reports.
Wholesale Silver Premiums and Delivery Times:
Market monitoring December 2025: Wholesale 1000-oz bar premiums expanded from $0.30-$0.50/oz early 2025 to $1.50-$2.50/oz for 6-8 week delivery, $3.00-$4.00/oz for immediate delivery from inventory. European refinery delivery times: 2-3 weeks normal extended to 6-8 weeks December 2025
Wholesale dealer surveys and market data.
Retail Silver Premiums:
Major dealer pricing December 2025: American Silver Eagles $8.50-$9.50/oz over spot vs $3.50-$4.50 early 2025 Generic rounds $4.50-$5.50/oz over spot vs $1.50-$2.50 10-oz bars $4.00-$5.00/oz over spot vs $1.00-$1.50.
JM Bullion, APMEX, SD Bullion, Money Metals website monitoring.
Industrial User Impact:
Solar manufacturer case studies: 2M oz annual consumption on monthly 167K oz purchases with 4-6 week inventory levels facing supply disruption when primary refinery extends delivery from 3 weeks to 8 weeks. Cost impact: $3/oz premium increase on 1M oz purchase = $3M additional cost.
Industry interviews and supply chain analysis.
COMEX and London Inventory Data:
COMEX registered silver: 48.2M oz December 24, 2025, down 37% from 76.4M oz January 2025. London vault holdings: 976.4M oz total November 30, 2025 with estimated 110-140M oz unallocated accessible stocks. Net outflows 45-60M oz in 2025.
https://www.cmegroup.com/delivery_rep...
https://www.lbma.org.uk/prices-and-da...
Silver Institute Industrial Demand:
2025 final data released December 19, 2025: Industrial consumption 680.3M oz, up 7.6% from 632.5M oz 2024 . Photovoltaics 212.4M oz, automotive 88.7M oz, electronics 154.2M oz. Industrial demand inelastic to 18.3% price increase.
https://www.silverinstitute.org/silve...
DISCLAIMER:
This video is for informational and educational purposes only and should not be construed as financial advice, investment recommendations, or an offer to buy or sell any securities or commodities. The content presents analysis of silver refining capacity disruptions and production crisis as of December 27, 2025, based on publicly available company announcements, industry sources, refining economics data, and silver market fundamentals.
TAGS:
silver refineries shut down, Johnson Matthey silver, Metalor refinery, Heraeus silver, 68 million ounces offline, silver refining capacity, silver production crisis, refinery force majeure, silver supply chain collapse, refining capacity loss, wholesale silver premiums, silver delivery delays, refinery shutdown 2025, silver shortage crisis, industrial silver supply, refining economics collapse, feedstock shortages silver, energy costs refining, silver allocation systems, retail silver premiums, refinery restart timeline, new refining capacity, silver market crisis 2026, physical silver shortage, COMEX silver inventory, London silver vaults, refined silver supply, electrolytic refining failure, silver treatment charges, merchant refining collapse, strategic silver hoarding, production facility closures, silver processing bottleneck, manufacturing supply disruption.