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 Replies: 71 / Views: 8,587 |
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Pillar of the Community
United States
919 Posts |
So no oil/diesel/gas is used in the mining of silver?
I would have to say the price of oil does affect the cost of mining. If oil stays at $100+ per barrel the cost to mine will also stay up. As spot goes down premiums will continue to increase. Stopped in two stores on Tuesday. One had no 90% (but needed it for orders) and one was selling at $3.50 over spot. I don't think we will be buying at $4 per oz unless something really hits the economy.
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Valued Member
United States
75 Posts |
Wait a second - as spot goes down premiums will continue to increase? you seem to be implying that spot could drop below the cost to mine silver, and thus they would increase the premium to cover their costs. I don't buy that - if spot touches the mining cost + profit figure, then they will stop mining to spike demand. The same way OPEC tells countries how much oil they can pump in order to manipulate the market.
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Bedrock of the Community
13014 Posts |
Silver and oil really arent comparable. Aside from the fact that the world runs on oil, oil is a consumable silver isn't. Very little if any metal is actually lost, it just keeps getting reused in different forms. Its also a by product of other metals that are mined which will always be produced. Where the cost gets to low to be profitable those sections of mines and mines will close, others will keep going or new cheaper ones will be opened up.
As the spot price falls premium percentage inceases but not really the premium. No one blinked an eye about paying 4 over spot at 35, its no different now at 19. The cost for mints to make the coins and sell them remains the same regardless of spot. That 4 dollarish premium is going to hold steady at any metal price which means the cheaper it is the higher percentage it will be but the dollar amount will be the same
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Valued Member
United Arab Emirates
283 Posts |
If it drops that low, I would probably wipe the market of Swiss silver francs.
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Pillar of the Community
United States
511 Posts |
$4 silver? That's delusional. One person mentioned how gold and silver is mined as a byproduct of mining base metals. True, but what makes you think the miners robotically sell their gold and silver regardless of the current price?
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Bedrock of the Community
13014 Posts |
They robotically sell it because that's how they make money. You don't make money as a production company sitting on product. That's also a good way to lose contracts to other companies that are selling or get the epa on you if you're trying to hold a market hostage.
There's nothing delusional about 4 or 5 dollar silver, we had that for about 30 years not long ago and we had it for several decades before that spike. You can't use the spike of a couple years ago as evidence of price while ignoring all the history before it. That doesn't mean well have 4 or 5 dollar silver this year or maybe even next year, but its a fallacy to say it couldn't happen.
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Pillar of the Community
United States
3789 Posts |
Everyone who thinks the miners determine the price of metals is WRONG. Everyone who thinks miners have to have a set price in silver and gold to mine are WRONG.
The bottomline is the miners will always continue to mine metals at any price. If that means they have to close mines, consolidate projects, operations, whatever, they will continue to mine, they will do everything and anything and will continue to mine gold and silver at any price.
If you dont believe it then read the miner's reports as they are filed with the SEC.
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Pillar of the Community
United States
1554 Posts |
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Pillar of the Community
 United States
3670 Posts |
"$4 silver? That's delusional."
I imagine when it dropped that low back around 2000 just a measly 13 years back everyone before that time probably thought the idea was delusional....
Fact is I started this thread as a way to call out to the ELEMENTS hey this is out of control this fall lets turn this back around, as to say where is the bottom as that is the key buy time....
Funny thing is it was the bottom for now anyhow when I started it as I was pointing out to Universe that hey this fall is too low to fast, how bout some love for pmz again? Its like when a ball player in sports like Lebron James cries to ref in hopes of a future call in his favor which he in turn often gets....
Some may think to self that is just delusional Hawk, the idea any thought you or anyone could post could effect such larger things but we are all connected in ways we cant comprehend....
My grand mother would stop a car and turn the other way if a black cat crossed in front of her, and I think same way. Other day one started to cross road, then turned back the other way so I kept on going strait....
Law of average if something swings one way long enough it looses momentum and it starts back the other way like a steel ball centered between two pieces of elastic cord....
Edited by Silverhawk74
07/23/2013 11:57 pm
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Pillar of the Community
United States
3670 Posts |
What was the point of that rant above, I felt if I pointed out the fact 4 dollars is about the bottom and getting close, that it would cause pmz to swing back and they did. Did one actually effect the other, well no. But if I think it did, well then it does, lol....
Edited by Silverhawk74
07/24/2013 12:21 am
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Pillar of the Community
Canada
576 Posts |
Silver at 4 bucks? I'd have to go on a 12 step program.
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Replies: 71 / Views: 8,587 |
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Posted 07/18/2013 4:37 pm
