| Author |
 Replies: 12 / Views: 3,427 |
|
|
Pillar of the Community
United States
586 Posts |
According to mining.com, 2017 AISC (All-In Sustaining Cost) of silver miners and gold miners are: $11.5 per ounce, $833 per ounce. Those are industrial averages. On top of it, if you add 20% operating profit margin, which is quite generous number; you get $13.8 and $1000. And there's more to add, retail margin; let's say 10% which is typical for dealers. The final numbers arrive to about $15 for silver, and $1100 for gold. The current spot price looks like a rip-off, now.  |
|
|
|
Rest in Peace
United States
17900 Posts |
There is a billion ways to justify or negate metals pricing.
Fortunately my Dog Toby tells me well in advance when any significant change is coming down the future pipe.
|
|
Valued Member
United States
245 Posts |
I would like to say that demand is what drives the price of metals such as gold or silver. If it costs $833/oz to pull out of the ground, I guess you have a good idea where the bottom would likely be.
|
|
Pillar of the Community
 United States
586 Posts |
Miners have been making fat profit for 2017. In other words, it makes more sense to DIG gold and silver, than to STACK. If you choose to stack, you're paying miners BIG bucks instead.  |
|
Moderator
 United States
54280 Posts |
The price of silver and gold is based on what buyers are WILLING to pay and has little to do with what it costs to mine. Many, many miners have gone out of business when buyers were not willing to pay what it cost to mine.
|
|
Pillar of the Community
United States
4333 Posts |
I've been digging silver for years, it IS cheaper than stacking ;)
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
|
|
Pillar of the Community
United States
586 Posts |
|
|
Pillar of the Community
United States
3343 Posts |
On any given day that you're a buyer, you pay what you have for as much as it will buy.
And never let it accumulate to over 5% of your total savings.
Metals are a hedge against unpleasant outcomes. They aren't a reliable investment. More of a side bet on the don't.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
03/23/2018 11:10 pm
|
|
Pillar of the Community
United States
4333 Posts |
Quote:
And never let it accumulate to over 5% of your total savings. Please explain. When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
|
|
Pillar of the Community
United States
3343 Posts |
Just my philosophy fistfulla. It's a hedge for me. Last year it paid for my health insurance when I was cash short. I spent the rest of the year replenishing it.
In the short term its a piggy bank that holds constant value. Less liquid than money in the bank, so not apt to disappear.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
|
|
Bedrock of the Community
United States
36724 Posts |
Not really an "investment". Metals are an insurance policy against devaluing paper and digital dollars.
|
|
Pillar of the Community
United States
581 Posts |
Every single fiat currency/money/legal tender etc. no matter if it's paper, digital, polymer etc. ALWAYS returns to it's physical intrinsic value which is basically zero.
There is not one example throughout human history that hasn't.
Mining costs are not relevant in any meaningful way to the average person buying physical PMs.
I would only purchase gold. Buy at 5% above spot max; sell at 5% below spot max. Hold the physical gold yourself.
|
|
CCF Advertiser
United States
1533 Posts |
I would love to sell you gold at 5% over spot and buy from you at 5% under spot. These days you can buy/sell and oz of gold with a $40 spread or less. At the show I was at this Sunday, I could have bought at $7 over spot and sold at $2 under spot. I ended up selling at $40 over. Didn't buy anything, though I was tempted.
|
| |
Replies: 12 / Views: 3,427 |
|
Posted 11/13/2017 5:08 pm
