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<p>[QUOTE=&quot;Blaubart, post: 1542818, member: 37498&quot;]My predictions of $20/Oz are based on the fact that people were extracting and selling silver for $5/Oz not too long ago. I understand that in many circumstances it was not possible to earn a profit at that price when they were just mining silver, but that&#039;s not what was happening for most mining companies. Many of them were mining and earning the majority of their profit from other metals. Since they already had the ore out of the ground, and if there was enough silver in it to make it worthwhile, they were extracting that silver to help increase their profit.</p><p><br /></p><p>Of course the cost of oil has more than doubled since then and inflation has further eroded the dollar, but the cost of natural gas has dropped. Taking these major cost factors into consideration, I figure $20/Oz is absolutely possible. If anyone decides to chime in that it isn&#039;t, please cite other factors that are involved that would influence the cost of extraction in the <b>long term.</b></p><p><br /></p><p>But just being possible doesn&#039;t mean it will happen. There are many other factors that could affect the price of silver in the future: The economy, the strength of the dollar, demand for silver, the cost of energy, etc. I can only speculate based on what I know is true today, and based on those facts, I know that it is possible to extract silver for &lt; $20/Oz. If it is possible, and assuming demand doesn&#039;t rise significantly from where it is today, then the &quot;invisible hand&quot; of economics will eventually push the price down.</p><p><br /></p><p>Speaking of demand, that is real reason why silver is at $35/Oz today.&nbsp; It is not because it costs that much to extract it, but rather because people are willing to pay $35/Oz for it.&nbsp; If it isn&#039;t 7x as expensive to extract it now vs. when it was at $5/Oz, and if we aren&#039;t consuming significantly more silver now (and we aren&#039;t), then the price people are willing to pay is what is influencing the price.&nbsp; I cannot predict what other people will be willing to pay for it in the future, but I do believe supply and demand will eventually even out to a more natural level.</p><p><br /></p><p>For me, it also boils down to desire. I want silver to drop down to $20/Oz, or even lower, because I want to buy more of it to hold for the long term. So when I say I want to see $5/Oz silver again, that isn&#039;t a prediction that we will ever see it...[/QUOTE]</p><p><br /></p>

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