Global mine supply production is projected to fall in 2016 by as much as 5 percent year-on-year. This would represent the first reduction to global silver mine production since 2002. The lower price environment provided little incentive for producers to invest in expanding capacity at existing operations. Looking further ahead, many analysts expect global silver mine production to fall through 2019 as primary silver production from more mature operations begins to drop.

Scrap supply, which has been on the decline for several years, should further weaken in 2016. This outlook is based on additional losses in photographic scrap, a depleted pool of near-market silverware, jewelry and coins, and slowed scrap flows from industrial sources. Industrial scrap such as electronics cost more to recycle and the current price environment has weighed on the profitability of recovering silver from these end-of-life items.

Eoin Treacy's view

Here is a link to the full report. 

The loss of the photographic film market was a major blow to the silver market from the 1990s. However the metal also has other industrial uses not least in healthcare and the fight against antibiotic immunity. 

Silver continues to firm from the region of the 200-day MA. This is the first time in almost two years prices have found support above the trend mean and a sustained move below it would be required to question recovery potential.