Is investing in 1 oz Silver Coins a Good Idea

One thing about ASEs and other bullion coins: don't buy them slabbed for investment purposes. There would have to be a monstrous rise in silver prices just to get your money back.

 

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Silver mines, we are talking about silver here not copper. Big missX2

 

Copper mines produce more silver as a by product than dedicated silver mines. You aren't listening.

 

Why would a copper mine go out of business if silver dropped below $15 an oz.? I'm listening its just that your not making sense.

 

That's the biggest fallacy when it comes to metals. Mines operated for a long time at much lower prices. They just stop mining the most expensive areas and cut costs or move to a different location. If they are dependent on high silver they never had longevity anyway, plus they sell futures for what they mine as well.

 

Why don't you provide some empirical evidence for a change instead of regurgitating your personal opinion. Because in fact there is much more evidence to support the contrary. You first.

 

So there were no mining companies in the 1990s? It's simple business 101 stuff. You don't operate in a way that your average cost is higher than your sale price.

 

you're saying the same thing I am. Copper mines produce continuously, regardless of silver price. Don't reply to this with an obtuse response.

 

Oh a question with a question? Just provide empirical evidence to support your positions. Real simple.

 

mining output ==> http://www.dani2989.com/gold/silverproduction2011gb.html

 

Why wouldn't they? Copper is the main reason its a copper mine. Come on man. Focus Johnny.

 

The burden of proof is on the one who pushes the stacker/seller myth that price has to remain at a certain level because of the cost of mining.

 

weak backpedaling.

 

"World productionof silverin 2010has naturally increasedwith the increaseof thecombinedproduction of copper,zincand gold.I remind you thatover two thirdsof the productionof silveris not fromprimarysilver mines, butminebiproductsthat producezinc,copper, leadand gold.The increase insimultaneous productionof productionof copper,zinc, leadand goldhasmechanicallylead toincreased productionof silverin the world"

woops, deadline.

 

The information cost to produce silver per oz.is widely established and abundantly available. A two minute search on your end would find that out. Shifting the burden of proof is a poor debate tactic.

 

Wow that's amazing! Except that the cost to produce silver remains the same whether its from a silver mine or copper mine. Epic fail...

 

There's nothing to debate. You act like the cost is a set figure that cannot ever be adjusted, that there aren't other sources, that we really even need to be mining as much as we do considering it gets melted all the time, or that future production doesn't get sold to lock in profits and costs.

 

There is also the simple fact that markets determine the price of something not the cost of production. Long term viable operations manage their losses in down times and maximize profits when they can. The only reason I responded wasn't to convince you rather to mention it as I have read about many people over the years whom what they own is now worth significantly less (in some cases 10s of thousands less if not 6 figures) because they bought into the logic that some absolute floor is built in.

 

you're the one who said mines closed when silver prices fall. You've been proven wrong 5 different ways.

 

The shale oil industry is a group that can be used to correlate how operations are modified. When oil prices were high new wells were created left and right. When prices fell the industry stopped and closed wells that were below operational profit based on production costs. Others they learned how to operate much more efficiently.

I would think any mine and the industry in general would operate the same fashion. if price per oz of pulling and processing the material is greater than the market value out the door, then they try to become more efficient, lower production to use cash to bridge gaps, or shutter for some time frame.

if one just searches for "how many silver mines have shut down in 2016" you can find articles about this system ==> http://blog.bgasc.com/silver-mining-production-set-to-plummet-in-2016/

I don't know anything about the mining industry but I'm sure standard business economics come into play sooner or later.