Bounced off of $19 this time. I have been pretty consistent with my support at $18 until I think I said last time I could envision $17.50. I could see a $17. Not sure if $16 is possible. I'm just salivating thinking about it. I don't think the miners are worth staying in. I took profits from 10% to just over 30% on PAAS, HL and TGD on the last dip. Haven't held any miners since.
We are very possibly if not probably within 10% of a low on spot silver. Your price with the premium won't change much from here. Silver is like sex... take it when you can get it because you never know when it will be your last time before you have to pay a high price for it.
I expected a drop when the threat of bank runs began. TPTB would like you to think there aren't better options to your FRN tucked in a bank account. They want to give you the illusion you will lose money on physical metals. Meanwhile... the world's central banks are hoarding PMs as fast as they can. This temporary drop should be welcomed by those with vision. This is setting up where we could see an even bigger rise when it takes off.
They can only manipulate it for so long. The past shorts are almost ready to go bullish and take it in the other direction. When they tell you to sell... you know it is time to buy.
Personally I don't see it going below 18.50, if it does it would be like taking a roll of pennies to the bank and getting 60 cents for them. The cost of mining it/smelting etc is averaged about 18.50 FRN and that FRN is losing value everyday.
=The cost of mining it/smelting etc is averaged about 18.50 FRN
It is lower than that with most miners. Plus, the cost where they would shut down a mine is much lower. It is cheaper for them to lose about $5/oz than for all the expenses to put a mine on Care & Maintenance and pay unemployment etc. while hoping they don't lose their experienced miners to anybody else. HL saw that when their Lucky Friday mine was shut down for awhile. USGIF and others stole a lot of their good miners.
There is a lot of extra silver out there. It is far from scarce right now. It will take awhile for high prices based on supply/demand. It will track somewhat higher with gold, though. You sure aren't going to lose money with silver in the medium term. They can manipulate it down more in the paper markets, but what you will eventually see is the premiums to buy physical continue to go up. Eventually the silver used in manufacturing will exceed what is mined again, but the world economy needs to improve quite a bit before that happens. Solar panel manufacturers will continue to use more and more ounces per year. That will be a biggie and is continuing to grow.
"Since 2000, the amount of silver used by solar-panel makers has risen by an average of nearly 50% per year, with demand exceeding 47 million ounces in 2012. PV consumption now represents 5.6% of all industrial use of silver."
Not sure if I have seen a 2013 number yet. I think we will see over a hundred million ounces of silver used this year in Solar panels and it will continue to rise. Now we are starting to talk about some serious numbers.
(Note to self when silver prices are astronomical... be a "recycler" of solar panels. Each one has half an ounce to 2/3 ounce of silver I believe)