Supply from above-ground stocks dropped by 23.2 percent to 199.7 Moz. Scrap supply to the market in 2013 experienced the largest year-on-year reduction since the 1980s and was due to a combination of softer silver prices and an exhaustion of “distressed” coin and jewelry recycling. As a proportion of total silver supply, scrap dropped to under 20 percent, after averaging 25 percent in total supply the previous two years, and this served as a substantial contributor to the physical market deficit posted in 2013. Government sales increased only slightly to 7.9 Moz, an extremely low level considering government disposals averaged 43 Moz per year from 2002-2011. Visible Supply of Silver to the Market (Million ounces) 2012 2013 Mine Production 792.3 819.6 Above-Ground Stocks 260.0 199.7 …of which scrap 252.6 191.8 …of which hedging supply - - …of which ETF drawdown - - …of which Government Sales 7.4 7.9 Total Visible Supply 1,052.3 1,019.4 Note: This is ‘visible supply”, therefore the withdrawal of metal via ETF and futures exchange additions or de-hedging is treated as zero.