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Pan American Silver Corp. Message Board

  • marsinmylifetime marsinmylifetime Oct 15, 2013 10:55 AM Flag

    A lot of jibber jabber

    There's discussion here about the cost per ounce to mine, whether all in, or mostly all in, or something less than that. A person could get confused.

    Look at it the Peter Schiff way. If inflation has increased to the point that it is no longer economical to mine silver, then that is bullish for the price of silver. And in turn that's good for PAAS, which by all metrics, except maybe the cost per ounce to mine, is undervalued!

    Sentiment: Strong Buy

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    • Not only silver mining got expensive. The costs of mining copper increased substantially over the last 2 years. 20% of copper producers are losing their shirt with current HG price. If they go BK - the silver will likely go up. The best way to look at this is to compare data from GFMS from their 2013 survey vs 2011. They have nice presentations. In the 2013 it is on page 19 while in the 2011 it was on page 13 of the pdf. Good read.

      Sentiment: Strong Buy

    • Hopefully, Schiff didn’t say this. I had better opinion about him.

      Firstly, increase in inflation cannot affect economic case for mining silver, not in negative way at least. Also, if by any other reason silver can’t be mined economically, i.e. silver price drops below break-even point for silver miners and stays there long enough, then it can’t be good for any silver miner, PAAS including. In this case all silver miners would go out of business.

      By the way, even in case of hypothetical (it has extremely low chance to happen) scenario above, silver will be still mined because most of silver mining production comes from companies mining other metals (with silver as sub-product). It is mostly copper miners and some gold miners too.

      • 1 Reply to warmcamp
      • Yes, Schiff pointed out recently that 10 years ago you could make money mining gold at $450 an ounce, and make money. Now, you can't make money mining gold at $1300, because of the increased costs. That's inflation! Same for silver (mutatis mutandis). Schiff is pro precious metals! Or look at it this way. 10 years ago an ounce of gold bought you a nice suit. Today, is that still true? Big inflation coming. Gone food shopping lately? And silver is gold, just better.

        Furthermore, it is impossible for silver miners to be forced to stop mining for long because of the price of silver, because, supply decreases—demand increases—price inflates. Buy a cigar.

        Sentiment: Strong Buy

    • dcpayne1 Oct 15, 2013 3:46 PM Flag

      $17 Trillion NOW, $20 Trillion in 2016... Does it make a difference?.. Most Americans don't have a clue.. and say that SOCIALISTIC ECONOMICS will save the world.. YOU DON'T want to know what I think. But you can stock-pile Silver and Gold along with your bullets, medicine, canned goods and water purification. Go ahead.. take my advice.. you'll sleep better at night. Learn to shooot straight.. everyone LIKES a straight shooter.

      Sentiment: Strong Buy

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