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<p>[QUOTE=&quot;mikem2000, post: 1475461, member: 30574&quot;]Can you back up your statement about &quot;consistently decreasing supply&quot;.&nbsp; </p><p>Silver can currently be pulled out of the ground at $18-$20 per oz. total cost delivered. When silver was trading in low teens, there was not a lot of incentive to mine new silver, so mines closed, etc. etc.&nbsp; and we were dealing with the above ground supply which is of course limited.</p><p><br /></p><p>&nbsp; When silver rises, then&nbsp; there becomes more incentive to mine, and we start really tapping into the below ground supply.&nbsp; Whatever you may of heard, there is no shortage of below ground silver, it is just a matter of the cost of mining.</p><p><br /></p><p>So, what does that mean.&nbsp; Well in the short term, silver can fluctuate greatly, but in the long term, it will settle around the total cost of mining.&nbsp; So right now, the smart money is on silver drifting lower, and hanging in the low $20&#039;s.&nbsp; Of course, like I said, fluctuations can and do happen.&nbsp; </p><p><br /></p><p>When playing the silver market, the folks who make the most money, are usually buying when below, the cost of mining, selling, or shorting, when above.&nbsp; These folks take advantage of the fluctuations, and place their bets accordingly.</p><p><br /></p><p>Now silver can also be used as a hedge against inflation. With inflation, the total cost of mining will go up, and the long term price of silver should follow.</p><p><br /></p><p>We do have a lot of dooms day folks here, but the fact is we have little or no inflation and it really makes little financial sense, to base an investment strategy on a dooms day scenario. The folks who do this in my opinion are just making a feeble attempt to justify their &quot;stack&quot;</p><p>The fact of the matter is, in the VERY remote chance of a total dollar collapse, you are going to have much bigger problems that a stack of silver will not help.</p><p><br /></p><p>So that is my theory in a nutshell.&nbsp; Please share your reasoning of why silver is undervalued.</p><p><br /></p><p>Mike[/QUOTE]</p><p><br /></p>

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