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<p>[QUOTE=&quot;justafarmer, post: 1721851, member: 3926&quot;]I am of the opinion that the costs presented here are on the high side.</p><p><br /></p><p>The Silver Institute states a cash cost of $8.88 per ounce. Some may disagree with this number but I feel it is reasonable and in the ballpark based on the fact annual mine output was 600 million ounces just 10 years ago at a board price of $5.00 and lower. I just don&#039;t believe the cost dynamics as being suggested in this thread over the last 10 years. </p><p><br /></p><p>Be that as it may these folks don&#039;t operate under some kind of wildcat business model. Miners are not commodity speculators. Their production and price is fixed (for the short term - 12 - 24 months or so) through forward contracts, hedges and other such mechanisms. Impact from today&#039;s prices on mine production is another 1 to 2 years down the road.</p><p><br /></p><p>As for the impact of scrap silver - it was a significant source of supply at $5.00 an ounce and will remain so at most price levels. </p><p><br /></p><p>Well that is the way this Dumb Old farmer sees it.[/QUOTE]</p><p><br /></p>

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