On average, silver components make up 40% of the value of by-products from production of zinc. Silver is found in all four types of zinc deposits which also contain gold. Due to the price decline in silver, the last seven months have added approximately 7% to zinc's production costs. This is causing future zinc production to be questioned which should dampen supply which is expected to slow to 2.8% next year from 3.9% over 2013 (Barclays Plc) as well as put upward pressure on price of zinc. However, supply of zinc is still double the 10-year average and although slowing, the zinc surplus is still growing. Glencore Xstrata, the largest zinc producer recently announced two mine shutdowns due to the lack of profitable ore.

Glencore Xstrata, the largest zinc producer in the world, shutdown the Brunswick mine and is shutting down Perserverance mine

Glencore Xstrata, the largest zinc producer in the world, shutdown the Brunswick mine and is shutting down Perserverance mine