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Message:: [QUOTE="Lucky Cuss, post: 1732549, member: 44086"] Marc Faber, publisher of The Gloom, Boom, & Doom Report was interviewed on CNBC this morning and his commentary pertains to this topic somewhat. He didn't address silver per se, but he did say that the cost of production for new gold was around $1,100 per ounce. He didn't go quite so far as to assert that constituted a floor, but the implication was there. I'd remark, as an example of how that might not be, that the replacement cost of houses (in terms of construction expense) didn't seem to prevent existing home prices from sinking to levels below that figure over the course of the last several years. He also noted that there's a credit bubble in China and that in general interest rates are artifically low. My takeaway would be that Chinese demand for precious metals could be severely curtailed in the near future and if the U.S. takes the lead in allowing interest rates to come back up, which now seems likely, that the dollar strengthens. Those factors would work to further depress gold and silver prices. My impression overall is that silver has yet some negative room left to run. The real question might be when do large holders of physical silver capitulate and flood the market in the course of fleeing to more stable investments or business models, and to what degree that could contribute to a downside cascade. An indicator that this is impending might be if some of the smaller bullion and coin dealers, with whom we've already seen some aberrant practices, begin to give up and close their doors altogether.[/QUOTE]

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