It might be cheaper for EXK to buy silver at "futures" prices on the COMEX rather than mine it from the earth and going through the trouble of refining it. When these paper prices go below the cost of producing silver ingots, then these miners with cash reserves would be better off closing down mine production (temporarily) and buying up "futures" contracts and then demanding delivery. Guess what would happen to the price of silver under such a scenario?
Bernanke "jawbones" the dollar up and keeps interest rates low simply by making noises that the Federal Reserve is considering ending QE "sooner rather than later". This BS is really blatant manipulation of currency and interest rate markets. Silver miners should do the same thing. They should band together and appoint a spokesman who could announce the miners plan to shut down production and start purchasing on the COMEX if silver prices sink much lower. Just suggesting that plan would jump start silver prices.
Great post. Barrick, Vale, Goldcorp, SLW (streamer), and some others could not stop production because of time warrants, time options and notes in play, but they and all miner's could hold back as much inventory as possible. I known you long enough to know where you are coming from, a person who I wish was my neighbor. "This BS is really blatant manipulation of currency and interest rate markets." It really is.
Management of the larger miners can adjust the time to price of their personal option benefits. This is a reason why they don't speak out against the banks. Other reasons include financing and deal- making support from JPM and GS. Two more reasons why large mining companies don't speak out is: credit ratings and buy, hold and sell recommendations that are placed on them from banks. Many of the larger pms are no different in their actions than that of a large oil company.