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iShares Silver Trust Message Board

  • silver_stacker silver_stacker Apr 25, 2014 12:10 AM Flag

    The problem that the silver mining industry faces

    as its ore grades continue to decline, is the increased energy costs in processing more tonnage of ore to produce the same or even less silver in the future.

    Sentiment: Hold

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    • Creates scarcity which raises price. It will equal out short run.

    • is there any mineral that doesn't apply too ? My simplistic thinking is PM prices generally (speculative spiking aside) follow other metal prices up. I think a multidecade perspective reinforces that.

      I think silver price will increase, at a pace faster than the inflation rate...but not greatly more than that......long term I mean.

    • It´s logic, that they will shut down production to raise the prices.
      But huge shortsellers know that, and that´s not in their interest, because prices might explode.
      Coeur mines might be the first one, because they lose money at current prices.

      • 1 Reply to spoulsen55
      • imo....corporations and industries don't shut down to drive prices up. Can you think of any examples of it being done ?

        Why...they put their employees out of work (not a good thing), they lose the confidence and pricing of their suppliers (not a good thing), they lose the confidence and pay penalties for not delivering on their supply contracts. Idled equipment is costly to restart. Management loses incentive payments, their lenders lose faith in the company as an on going enterprise....investor lose faith as an investment.

        Just saying...don't seem like folks here know much about corporations (not to say I do, but apparently more than many here) .....I have seen the miners will shut down posts for a year....seen any ? Now they could reduce output. But it is a gamble (that future prices will make that a good decision)...risk and reward...tough call.

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