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<p>[QUOTE=&quot;World Colonial, post: 2518957, member: 78153&quot;]Absolutely correct.&nbsp; It is one of several rationalizations supposedly supporting higher silver prices, a twin to (supposed) supply deficits.</p><p><br /></p><p>The prior post on cost accounting is also highly relevant.&nbsp; Once a silver mine has been opened, the sunk costs to do it are gone.&nbsp; So whether the silver spot price is below the &quot;all in&quot; cost from an accounting standpoint is not necessarily relevant and may be totally irrelevant.&nbsp; It may make sense to continue to operate a mine at loss from a GAAP or internal accounting basis as long as the selling price exceeds the marginal cost of production, otherwise known as positive operating cash flow.[/QUOTE]</p><p><br /></p>

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