The Men Separated from the Boys

Gold and Silver up slightly but it looks like the bleeding will continue...Platinum is
on the verge of going under the $900 mark !

 

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Did you really have to get all logical on us???

 

Jim has that bad habit of breaking out theories, facts, economics, and other stuff on us.

Point is, short term prices can do anything. Long term, they will have to at a minimum equal incremental cost of production ignoring sunk and shutdown costs. It is a commodity, though, so usually they get reduced down to a band between this and a price slightly higher than opening up a new mine and cost of capital. I have no idea what this band might be. If I had to guess for silver, with the current price of oil, it might be between $10 and $20. Just a somewhat educated guess though. Oil prices and prices of copper have a lot to do with it.

 

The production cost range varies appears to vary wildly from mine to mine. There is a large operation in AK that claims silver production costs of less than $4 per oz.

http://www.hecla-mining.com/greens-creek/

Edit: More info here:
http://www.hecla-mining.com/wp-content/uploads/2015/10/HMC-Cash-Cost-per-Ounce.pdf

 

So based on the fact that we are talking production costs of around $4 what would
It cost to keep the mind profitable, my guess would be around 25% but at those
Prices Silver could really take a dive down from current levels.

 

Its like buying a rock. I get it, but can't get excited about it. Only creates a need for greed. Not a hobby then. I think lower of these types. Cant be trusted

 

Last time silver was $4.95 an ounce silver eagles were $8.00 to $10.00. Wow the market has changed $1,75 premium of $15 to $20 silver!