FLASH Posted October 28, 2008 Report Share Posted October 28, 2008 Anyone know what the average silver mining production cost is and the average operating margin on top of that? It must be near the stage where mining companies are making losses? This stuff doesnt materialize out of air, there must be a floor here somewhere? I have just looked this up on the silver institute website and by the looks of this it is only $1.52 per ounce. I wish i had looked this up before loading up at $17. I have pasted the quote below. Silver Production Global silver mine production rose by 4 percent in 2007, with particularly solid gains from Chile, China and Mexico. Total silver mine production reached 670.6 Moz last year. Peru was the world�s biggest silver mining country in 2007, followed in the rankings by Mexico, China, Chile and Australia. Last year, silver generated at primary mines drove global totals higher, increasing by 11 percent to account for 30 percent of all silver mined. Cash costs at primary silver mines rose to a weighted average of US$1.52 per ounce, driven by a combination of labor, consumables and energy cost rises. Link to comment Share on other sites More sharing options...
THEBIGMAN Posted October 29, 2008 Report Share Posted October 29, 2008 I have just looked this up on the silver institute website and by the looks of this it is only $1.52 per ounce. I wish i had looked this up before loading up at $17. I have pasted the quote below. You ain't alone there, buddy Thank goodness sterling has gone down the U-bend, otherwise I'd be looking at a 50% loss. Bunch of arse, I say. Um, rant over. Link to comment Share on other sites More sharing options...
G0ldfinger Posted October 29, 2008 Report Share Posted October 29, 2008 An average of $1.52 looks very low. I'd be surprised if any of the North American mines can produce at these costs. It's a wonder then that silver mining shares are so depressed. They should make shed loads of profit, all of them (maybe that's a sign that the figure is somewhat off?). Frizzers might know more on these kind of mining issues. Link to comment Share on other sites More sharing options...
CharlieSays Posted October 29, 2008 Report Share Posted October 29, 2008 If you havnt caught the Financial Sense Hour this week. Ted Butler, bit silver bull, Talks all about production costs both secondary by-product silver production that is clearly tanking, which accounted for around 40% of the production last year, and that the primary production mines, which arnt able to produce at 9$. Second interview also very interesting and worth a listen, again about the PM market and price manipulation. 3rd Hour with Eric King and Special Guests Select an Audio Format for Part 2 Ted Butler, Butler Research Big Picture with Eric King and Dr. Alan Lemerand http://www.netcastdaily.com/broadcast/fsn2008-1025-3b.mp3 Link to comment Share on other sites More sharing options...
electroweak Posted October 29, 2008 Report Share Posted October 29, 2008 A few more days like today and I might break even .... Ag up over 10% in 24h. Link to comment Share on other sites More sharing options...
notanewmember Posted October 29, 2008 Report Share Posted October 29, 2008 If you havnt caught the Financial Sense Hour this week. Ted Butler, bit silver bull, Talks all about production costs both secondary by-product silver production that is clearly tanking, which accounted for around 40% of the production last year, and that the primary production mines, which arnt able to produce at 9$. Second interview also very interesting and worth a listen, again about the PM market and price manipulation. 3rd Hour with Eric King and Special Guests Select an Audio Format for Part 2 Ted Butler, Butler Research Big Picture with Eric King and Dr. Alan Lemerand http://www.netcastdaily.com/broadcast/fsn2008-1025-3b.mp3 Thanks for the heads up. Have not listened to this weeks yet and its already wednesday! Getting real lax here. I notice no Q-calls this week LOL. Must be full of abuse. Real interesting here - we could get a VW/Porsche hedgefund blowup thing with silver and gold. Link to comment Share on other sites More sharing options...
notanewmember Posted October 30, 2008 Report Share Posted October 30, 2008 Eric King is such a good motivational mentoring coach. What a great speaker. 00 Check portfolio 10 Thinking about selling gold 20 Listen to Eric King 30 Goto 00 Link to comment Share on other sites More sharing options...
DoctorSolar Posted October 30, 2008 Report Share Posted October 30, 2008 Eric King is such a good motivational mentoring coach. What a great speaker. 00 Check portfolio 10 Thinking about selling gold 20 Listen to Eric King 30 Goto 00 http://www.u.arizona.edu/~rubinson/copyrig...ed_Harmful.html Link to comment Share on other sites More sharing options...
Icarus Posted October 31, 2008 Report Share Posted October 31, 2008 With silver production down silver is a dead cert. "Every year the world produces some 550 million ounces of silver. World demand is on the order of 850 million ounces. The difference in these (300 million ounces) is drawn from existing stockpiles around the world." http://www.essortment.com/all/silverwhatpric_rgle.htm The world stockpile of silver is only 300 million ounces. Now is a good time to buy and a bad time to sell. Link to comment Share on other sites More sharing options...
Profhit Posted October 31, 2008 Report Share Posted October 31, 2008 Ahh the poorman's gold Great buy - look for the disparity between comex and real world bullion differences... youd be surprise Eric Sprott's Asset Mgmt team - John Embry strategist says defaults from mark to market acct in Dec/31 could have a huge impact on silver prices http://mining101.blogspot.com Link to comment Share on other sites More sharing options...
littledavesab Posted October 31, 2008 Report Share Posted October 31, 2008 Eric King is such a good motivational mentoring coach. What a great speaker. Yep it was a good interview. Watch Silver basically I am starting to like Eric King as well - I preferred FSN when JP & JL were on holiday and Eric was standing in it was a much better show !! Link to comment Share on other sites More sharing options...
G0ldfinger Posted October 31, 2008 Report Share Posted October 31, 2008 Yep it was a good interview. Watch Silver basically I am starting to like Eric King as well - I preferred FSN when JP & JL were on holiday and Eric was standing in it was a much better show !! Did he try to sell you a bridge? Link to comment Share on other sites More sharing options...
electroweak Posted October 31, 2008 Report Share Posted October 31, 2008 I'm going to bet Silver has a healthy start to the week. I just sent some more cash to GoldMoney for a purchase so I bet there's a huge rally before my cash clears! Link to comment Share on other sites More sharing options...
azazel Posted November 2, 2008 Report Share Posted November 2, 2008 Its amazing. I bought some silver coins for £12.50 when the spot price was $17 an oz. The spot price is now $9 an oz and they are £13.00 now. It must be only a matter of time before either the comex spot price goes up or becomes irrelevant. Link to comment Share on other sites More sharing options...
kernull Posted November 5, 2008 Report Share Posted November 5, 2008 Link to comment Share on other sites More sharing options...
FWIW Posted November 5, 2008 Report Share Posted November 5, 2008 Nice chart! I am optimistic we will see 15...just a matter of when! Link to comment Share on other sites More sharing options...
ziknik Posted November 5, 2008 Report Share Posted November 5, 2008 Nice chart! I am optimistic we will see 15...just a matter of when! You’re too pessimistic. We’re going to see $1,500/Ozt EDIT: Missed a zero Link to comment Share on other sites More sharing options...
THEBIGMAN Posted November 5, 2008 Report Share Posted November 5, 2008 We’re going to see $1,500/Ozt Ooooooooooooooookaaay Link to comment Share on other sites More sharing options...
romans holiday Posted November 5, 2008 Report Share Posted November 5, 2008 We’re going to see $1,500/Ozt I like the nice big number. If only it was in another currency. I wonder what the ratio of silver to gold might become. 20-1? Link to comment Share on other sites More sharing options...
ziknik Posted November 5, 2008 Report Share Posted November 5, 2008 I like the nice big number. If only it was in another currency. I wonder what the ratio of silver to gold might become. 20-1? I’m completely guessing* here. Silver could go to $infinity if the hyperinflationary scenario plays out. Assuming there is prolonged high inflation (not Zimbabwe style inflation), I think the Gold / Silver ratio will drop to between 5-10 as people are priced out of gold. EDIT: * An educated guess. I haven't picked my numbers out of thin air. Link to comment Share on other sites More sharing options...
romans holiday Posted November 5, 2008 Report Share Posted November 5, 2008 I’m completely guessing* here. Silver could go to $infinity if the hyperinflationary scenario plays out. Assuming there is prolonged high inflation (not Zimbabwe style inflation), I think the Gold / Silver ratio will drop to between 5-10 as people are priced out of gold. EDIT: * An educated guess. I haven't picked my numbers out of thin air. Yes, makes you wonder at what point the dollar price may become an irrelevancy. Takes an effort of will to do this... being so fixated on the dollar price as we tend to be. I am starting to think less of the $POG these days and will shortly be in no need of constant reminders that I bought gold in other and weaker currencies [whose POGs have held up nicely] due to a period of spiritual financial discipline I have been practicing these days. Link to comment Share on other sites More sharing options...
kernull Posted November 5, 2008 Report Share Posted November 5, 2008 Nice chart! I am optimistic we will see 15...just a matter of when! sorry, attempt failed, now we are going lower. i will post the update when i see the bottom Link to comment Share on other sites More sharing options...
Icarus Posted November 6, 2008 Report Share Posted November 6, 2008 I like the nice big number. If only it was in another currency. I wonder what the ratio of silver to gold might become. 20-1? The historical norm is 16 to 1 http://en.wikipedia.org/wiki/Silverite Link to comment Share on other sites More sharing options...
romans holiday Posted November 7, 2008 Report Share Posted November 7, 2008 The historical norm is 16 to 1 http://en.wikipedia.org/wiki/Silverite And, Icarus, I doubt there will be a "meltdown" next time it soars either. Link to comment Share on other sites More sharing options...
Pixel8r Posted November 8, 2008 Report Share Posted November 8, 2008 Interesting second hour on FSN Jeffrey Christian Founder, CPM Group The CPM Silver Long-Term Outlook: Supply, Demand, and Price, Ten-Year Projections Link to comment Share on other sites More sharing options...
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