Silver Will Not Top $20 Again Homies

I never said anything like that. Miners cannot just show up at any old spot and start digging. They have a limited amout of terrain available to them for various reasons and they need to make decisions. In years past they may have passed on a certain parcel because of low ore quality, but with the more efficient mining, that same parcel my be a go today.

 

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He thinks mining for silver is like opening lemonade stand. Find a good location and open shop.

 

I see the same thing up here in Montana. We have a large gold mine nearby that only operates during the summer months. They could operate year round and still earn a profit, but the expenses to mine in the winter are much higher than the summer months, so their total profit would be less. Since the amount of gold in the mine is finite, they figure they'll get to it eventually, so there's no sense in mining during the winter months.

 

Well said, and in years past,the folks may have had to close up shop much ealier but beasue of more advanced tecnology, they can keep on digging.

 

Yes, you are totally being snarky with that question, I am suprised that a man with your higher education does not know that. I would be looking for a refund if I were you. BTW I would hope that a man of your education also can see you are getting ripped to shreds on your "point" If you cannot see that, then I would DEMAND a refund. You are having a bad day, maybe tommorow will be better.

 

It's a bad thing for savers and creditors.

 

You should know this by now, it is only bad for savers, if what they are saving is the USD. Nobody, should be doing that when their are so many better things to save. For the folks who do "save" the greenback, their problem is not inflation, but a lack of understanding how the system works.

 

I don't know what you mean by meet demand, they can sell as much as they want to on the open market. Can you please elaborate?

 

Mining price does not mean that much for gold, there is about 6 billion ounces above ground, with around a 100 million ounces mined per year. Even if half of the mines closed it really wouldn't have that much affect on overall supply. It would certainly be bullish but not a guarantee of an increase in price.

Mining price is slightly more important for silver since about 60% of yearly mining production goes to industrial applications where later recovery of the silver may prove cost prohibitive.

 

Agreed, and to tie this back to the orignal premise from fiat fisaco about the technically finite availabity of metals effecting shorter term prices, I think we can safely call that myth DEBUNKED.

 

Tinpot, like every other commodity on the planet, there is only so much demanded at any given time. As there are more than one mine mining any one particular commodity, demand is spread out between them all, of course taking in yields and capacity. Just like the Ford plant isn't going to push out 4 million new cars if only 3 million are in demand through dealerships, a mine isn't going to burn through resources if they can mine the amount demand calls for in a short amount of time. We see this in everything from silver and coal to wheat and oranges and Levis to bourbon. It's simple economics. Mines don't stockpile.

 

This is gettin' good....

 

Mikem2000: You should know this stuff by now. Creditors receive their payments over a span of time. The less purchasing power they get back in real terms the more they lose. /// If not being in USD means buying stocks, save your breath. I wouldn't buy that swill to win a bet.

 

Let me guess: You just don't get it longnine.

 

The reason why creditors charge interest, is not only to earn money but to cover the cost of inflation, they understand how the system works and mild inflation (which is what I am taking about) causes them no harm. They plan for it an understand it. Now don't be putting words in my mouth about stocks, stocks are only one of many options, lets just use you for an example. As an owner or bullion, is mild infaltion going to effect your buying power. Not in the slightest, so again, how is mild inflation a problem?

 

I have never said that one, go look it up, that is reservered for folks who cannot make a point. You know, the Agarns.....

I hope you understand that is joke, I mean like you started it right

 

Very true, the mine has no need to stockpile since the mine itself IS the stockpile.

 

Mikem2000: I didn't put words in your mouth. I said "if." And it doesn't matter if creditors charge 80% interest. If they get back debased money they are getting less in real terms than if it wasn't debased.

 

I was going to reply like Mike did, but I also know its not that simple. I am aware of the current low interest rate market and how bad this is for those who have saved and are trying to live on this savings. I understand this sucks, and I am completely against it. Its simply another form of government confiscation from those who did the right thing and saved in life.

 

Really??? a technicality on "if" if you didn't mean it why even say it. C'mon, you are better then that.

Now what the heck are you talking about. When a creditor charges interest, the whole point is to turn a profit, the amount of interest charged is calculated to cover the costs of infaltion plus a bit more. When a bank lend out 300K for a mortgage at 6% for 30 years, they recieve back 647k So sure it is debased, but it is over twice as much as was lent, there is true profit after inflation. So what is the problem? If they bank couldn't turn a profit after infaltion they wouldn't do. So where is the issue, Are you confusing normal mild inflation, with HIGH inflation. If so, I agree, but that is not what I am talking about.

OK so now we know both creditors and saver are not hurt by inflation, so what your point?