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 Replies: 23 / Views: 3,269 |
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Valued Member
United States
264 Posts |
Watching the daily charts, it appears silver could be testing a low of $20 soon. We have already seen a pull back in bullion/collectible supplies ( Perth Mint) and the magic $20 might trigger another production drop. How will $20 silver affect market supply? Are you waiting to buy or sell at $20? |
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Pillar of the Community
United States
1054 Posts |
I've bought some silver in the $22.80 range last week, so it's not too important. I just don't want it to drop too low. In comparison to the cost of mining, it shouldn't drop too much more than where it's at currently unless these companies drop the production rate.
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Pillar of the Community
United States
2543 Posts |
It will not drop to $20, It costs the mining companies $23 an ounce to produce it. Silver will have a hard time sustaining a $23. Mining companies are not going to produce silver at a loss.
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Bedrock of the Community
13014 Posts |
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It will not drop to $20, It costs the mining companies $23 an ounce to produce it. Silver will have a hard time sustaining a $23. Mining companies are not going to produce silver at a loss. How were they mining throughout the 90s and 2000s then? Some silver may cost 23 an ounce, likely theyre just getting creative with the costs or have gotten less efficient and going after harder to get silver with the higher prices |
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Valued Member
 United States
264 Posts |
Great points! Which lead me to believe we have hit a floor in the market. Yet what happens if the investment demand for silver drops resulting in more supply? Is the demand there...  |
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Pillar of the Community
United States
2373 Posts |
20 dollar silver shouldn't have any different effect on supply than 23 dollar silver. Weaker hands have already been shaken out of the physical market. The last drop only increased the demand and premiums on physical. I would expect another bear run at the price to around 17 dollars. I don't think it will be successful at increasing inventories though. Demand is too strong for the moment and inventories will be gobbled up. Look for low premium additions to your long term position, at least that is what I am doing.
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Pillar of the Community
United States
1054 Posts |
Let's turn back the clock a decade or so. At $7 silver/oz. prices, weren't everybody finding bullion and junk pretty easily. I know I was when I was living in Nevada at the time.
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Valued Member
United States
240 Posts |
I hope it drops to 5 an oz. I love coins but there just too expensive with silver so high
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Pillar of the Community
United States
1454 Posts |
In late 2008/early 2009, silver was sub $10 and readily available. Don't know why another major silver downturn would be different next time. Did we hit "Peak Silver" five years ago or something?
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Valued Member
Canada
470 Posts |
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Which lead me to believe we have hit a floor in the market. Really? - a bottom in a bottomless pit?, this is going to be a killing floor for a couple of months.It's easy pick'ins for the IMF DEFLATION FUND. |
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Bedrock of the Community
13014 Posts |
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Don't know why another major silver downturn would be different next time. Did we hit "Peak Silver" five years ago or something? No, its just personal bias coming through in opinions imo. Were only a few years removed from silver being mined at 5-10 dollars an ounce, obviously its possible and production isn't going to come to a hault if that happens. Not to mention a lot of people think itll spike back up to 50 any day now. If it drops all the way down youll have panic selling and if it sits there to long youll have more people dumping it getting sick of waiting. We arent in any danger of a silver shortage anytime in the near future barring a lot of natural disasters |
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Pillar of the Community
Canada
2805 Posts |
I just need silver to break $14, because then 0.6 of an ounce will cost around $8 and bulk Canadian silver dollars will go for $10 each with markup (when they were worth $17 I saw them at $20, so it's possible), and then I can buy one a week on my limited allowance.
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Pillar of the Community
Japan
666 Posts |
How were they mining throughout the 90s and 2000s then?>>>
<whispering...> back then energy was less expensive as well labor, and other costs
<<<< If it drops all the way down youll have panic selling and if it sits there to long youll have more people dumping it getting sick of waiting. We arent in any danger of a silver shortage anytime in the near future barring a lot of natural disasters>>>
silver dropped from 49 to 23
how much of panic selling have you seen?
Me? A little ...
If it drops more I buy more. I'm still paying huge premiums for bullion with numismatic value. I'm still getting some 900 silver below the spot, so stack is growing, fiat is earned, sky is not falling, me happy so far
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Bedrock of the Community
13014 Posts |
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back then energy was less expensive as well labor, and other costs Not so much so that now theres 15+ dollars added to the price an ounce. The simple fact is theres no way to get real costs from miners. They can be getting more expensive stuff now, jacking up their costs in the books as write offs, under reporting their output ect. No one stands there and counts every single ounce that comes out and no one knows exactly how much is down there they can get so there is a bit of an honor system. Not to mention they could just not be very efficient getting it. If my costs are $1000 and I say I pulled out 100 ounes thats 10 an ounce. Now if I still pull out 100 and say I only got 70 or 50 thats now 15 or 20 an ounce. Plus with the futures markets theyve already sold their production for the next few months/years anyway. Edited by basebal21
05/02/2013 10:23 pm
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Pillar of the Community
Japan
666 Posts |
Not so much so that now theres 15+ dollars added to the price an ounce. >>>
of course not so much, but one of the factors is increase in production costs
then you claim:
<<<They can be getting more expensive stuff now, jacking up their costs in the books as write offs, under reporting their output ect.>>
so why do you think they started doing it now, not 20, 40, 60 years ago?
cooking was always there, but the price increased during last decade
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Bedrock of the Community
13014 Posts |
They probably have always done it, with the higher spot price theres more incentive now and also being able to claim it costs so much to mine feeds into the fear of allowing silver to drop protecting their own interests as well.
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Replies: 23 / Views: 3,269 |
Posted 05/02/2013 4:10 pm
