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<p>[QUOTE=&quot;gxseries, post: 434602, member: 4373&quot;]I don&#039;t believe we will ever see the days of $5/oz silver ever again - it&#039;s just too unrealistic unless oil prices fall back to 50usd/barrel but I&#039;m sure we all know the answer to that. </p><p><br /></p><p>However a high metal price doesn&#039;t automatically guarantee that there will be an increase level of production, instead the opposite will happen, that is LOWER production of metals will be produced. The reason for this is because as prices of metals get higher, lower grade ores which could have been treated as waste can be economically grind, milled, etc. Because milling machines are just so expensive, it&#039;s just not feasible to install new machines to process more ore. High grade ore, low grade etc all go through the same machine with adjustments. </p><p><br /></p><p>Therefore, once managers have a good idea that when metal prices are definately going up, they will likely try to process a higher percentage of stockpiled low-grade ores which in turn reduces overall supply. Prices spike up accordingly to the lower supply which then when the low grade ores are almost processed, there should be a batch of new high and low grade ores mined. Depending on the market condition, managers will have to judge what grade or mixture to process. </p><p><br /></p><p>There is no way that prices will just keep on going up and up and up unless global population and demand increases at the rate that YOU dream. Probably a lot better to invest in agriculture related stocks. For the past couple of months, I have repeatedly stated that prices can&#039;t go too much higher. For those who made profit recently, congratulations.[/QUOTE]</p><p><br /></p>

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