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<p>[QUOTE=&quot;medoraman, post: 1477088, member: 26302&quot;]I think we are getting closer. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /> My only dispute would be regardless of market price cost of production is independent. What happens is cost of production changes most on energy prices assuming similar mines in operation. At times the mines may make a mint, but they need to since at other times they are losing money. All of them lose money for too long and mines start to close. This would take a year or more usually. Have high prices and high profits for too long and people look to open new mines. This takes longer, especially in countries like the US with myriads of environmental rules. I seriously doubt any new mine has opened yet in responses to silver first going over $30 an ounce. I am not saying they WILL, just saying it takes that long for new production to come online. </p><p><br /></p><p>This is why I have always believed silver COULD go to $100 for short term, maybe a few years. At some point, though, economics will produce more competition in my view. This is assuming current energy prices. If oil went to $300 a barrel, I am not sure $100 an ounce silver is hugely profitable. Like I have said, thinking of PM as condensed oil is in many ways a good way to understand its underlying price structure.</p><p><br /></p><p>Just my opinion.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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