Generally the costs of mining silver remain fairly stable. Therefore, as silver prices rise, so does the bottom line profit of the miner. So if you believe that silver prices are heading higher, you should anticipate higher profits in the future. SS
IMO this is a clear warning to those who have been manipulating and suppressing silver prices. As the world wide silver bullion supply drops, the ongoing demand for silver bullion is certain to drive the price much higher. It's basic supply and demand economics. Those short silver will eventually have to cover. Demands for silver deliveries from the COMEX will be costly to meet as the silver bullion supply continues to diminish. Cash settlements for delivery demands will become necessary when silver for delivery can only be obtained by paying outrageous prices for it. The manipulation game may now be in it's final stage as evidenced by today's sharp silver spike off it's recent lows. Silver may retest it's low again, but the manipulation game is now in it's final stage IMO. Order your bullion and coins today while the price is still attractive. Silver prices will be above $60 prior to the start of 2013. SS
shortage again, if the MM drops the price of Ag too much, will not that in itself affect producers to not produce so much to a down market? We know their costs will increase. And stackers will buy more, other producers will follow EXK and hold silver off market for a better price.
I have heard the same thing. Turd mentioned that it is a fine line between how low you want to try and drive the paper price without causing the physical market to decouple and affect supply of physical. That would leave naked paper shorts in a vulnerable position if there was a sudden huge surge in physical demand that couldn't be delivered. Just looking at the charts shows that Comex physical supply has dropped dropped rather dramatically from 2009.