The Men Separated from the Boys

Discussion in 'Bullion Investing' started by fatima, May 5, 2011.

  1. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER" Supporter

    Gold and Silver up slightly but it looks like the bleeding will continue...Platinum is
    on the verge of going under the $900 mark !
     
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  3. Johndoe2000$

    Johndoe2000$ RE-MEMBER

    Did you really have to get all logical on us??? ;)
     
  4. medoraman

    medoraman Supporter! Supporter

    Jim has that bad habit of breaking out theories, facts, economics, and other stuff on us. :)

    Point is, short term prices can do anything. Long term, they will have to at a minimum equal incremental cost of production ignoring sunk and shutdown costs. It is a commodity, though, so usually they get reduced down to a band between this and a price slightly higher than opening up a new mine and cost of capital. I have no idea what this band might be. If I had to guess for silver, with the current price of oil, it might be between $10 and $20. Just a somewhat educated guess though. Oil prices and prices of copper have a lot to do with it.
     
    -jeffB likes this.
  5. losthomer

    losthomer Member

    The production cost range varies appears to vary wildly from mine to mine. There is a large operation in AK that claims silver production costs of less than $4 per oz.

    http://www.hecla-mining.com/greens-creek/

    Edit: More info here:
    http://www.hecla-mining.com/wp-content/uploads/2015/10/HMC-Cash-Cost-per-Ounce.pdf
     
    Last edited: Jul 10, 2017
  6. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER" Supporter

    So based on the fact that we are talking production costs of around $4 what would
    It cost to keep the mind profitable, my guess would be around 25% but at those
    Prices Silver could really take a dive down from current levels.
     
  7. Cheech9712

    Cheech9712 Active Member

    Its like buying a rock. I get it, but can't get excited about it. Only creates a need for greed. Not a hobby then. I think lower of these types. Cant be trusted
     
  8. Billyloves silver

    Billyloves silver New Member

    Last time silver was $4.95 an ounce silver eagles were $8.00 to $10.00. Wow the market has changed $1,75 premium of $15 to $20 silver!
     
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