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  #1  
Old 12-23-2011, 12:33 PM
yellowsnow yellowsnow is offline
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Default Cost of Mining Silver

There're still people dreaming of 5, 10, 15 or 20 dollar silver.
Cost analysis for hecla mining see 17.84 $/oz silver
https://www.kitcomm.com/showpost.php...6&postcount=41

Now another cost analysis for Pan American Silver came to $18.54/oz, consistent what i've been saying that $5/oz cost of mine silver is bogus. http://www.tfmetalsreport.com/forum/...-mining-silver

Remember that miners sell crude ingot of ~98% silver to refiners, as shown from the recent videos of how to mine silver, miners don't get the full spot price for 0.999 silver. If u can get .999 silver for under 25 by clicking a mouse, u are out doing all the silver miners out there.

Last edited by yellowsnow : 11-10-2012 at 08:54 PM.
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  #2  
Old 12-23-2011, 12:37 PM
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Westerner Westerner is offline
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And keep in mind that those are the cost of vary well oiled established miners. As more and more regulations and government mandates come down the pike it should double in cost in a short few more years.
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Old 12-23-2011, 12:41 PM
jbjunior jbjunior is offline
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While I agree that 5 or 10 dollar silver is very unlikely, one only has to look to platinum to see that the spot price investors (or stackers) pay can certainly be lower that the cost to produce.

If were comparing 2010 numbers this very forum (well the platinum board anyway) show an estimated cost of $1300 and $1680/oz. https://www.kitcomm.com/showthread.php?t=88084

I think the price of silver (and all commodities for that matter) will be more dependent on what happens to the world economy in the coming months and less on what it costs to produce or what we want the price to be.
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Old 12-23-2011, 12:45 PM
yellowsnow yellowsnow is offline
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Quote:
Originally Posted by Westerner View Post
And keep in mind that those are the cost of vary well oiled established miners. As more and more regulations and government mandates come down the pike it should double in cost in a short few more years.
yup, more regulation, higher oil price. That is why gold is up for 11 years straight. Oil is up 5X (20 to 100/bbl), note that gold had matched that same oil price rise from 325 to 1625/oz, how coincidence. Silver is more manipulated so it is more price volatile.
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Old 12-23-2011, 12:51 PM
yellowsnow yellowsnow is offline
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Quote:
Originally Posted by jbjunior View Post
While I agree that 5 or 10 dollar silver is very unlikely, one only has to look to platinum to see that the spot price investors (or stackers) pay can certainly be lower that the cost to produce.

If were comparing 2010 numbers this very forum (well the platinum board anyway) show an estimated cost of $1300 and $1680/oz. https://www.kitcomm.com/showthread.php?t=88084

I think the price of silver (and all commodities for that matter) will be more dependent on what happens to the world economy in the coming months and less on what it costs to produce or what we want the price to be.
u forgot that most of Pt and Pd come from russia, these miners are controlled by politicians not free market. However, most of Au, Ag and Cu are mined from big corps and IS PROFIT driven. Big corps don't operate at a lost just to preserve jobs. Also, for Pt, price ~= cost, it is not at a lost yet. Well, i am looking to stack some Pt, if i can find some

Last edited by yellowsnow : 12-23-2011 at 12:56 PM.
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  #6  
Old 11-10-2012, 08:58 PM
yellowsnow yellowsnow is offline
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when silver miners lose money on $30 silver market, what more can we say about those mis-leading single digit cash cost to mine silver.

http://www.silverdoctors.com/break-e...income-losses/
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  #7  
Old 11-10-2012, 09:46 PM
Chukar Hunter Chukar Hunter is offline
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At the rate things are going in the mining industry you will see a total cash cost to produce an ounce of silver near $40 in the next few years.
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  #8  
Old 11-10-2012, 10:14 PM
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WhatsUpDoc1958 WhatsUpDoc1958 is offline
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Quote:
Originally Posted by Westerner View Post
And keep in mind that those are the cost of vary well oiled established miners. As more and more regulations and government mandates come down the pike it should double in cost in a short few more years.
Since Hecla's mines are in North America, regulation costs from the United States and Canada are expected to be higher. Hecla's largest mines are located in Alaska and Idaho. Regulation costs from mines in other countries could well be lower than Hecla's. DYODD.

From Zeal Research, 12 Favorite Silver Mining Stocks:

Quote:
Hecla has twice been the New York Stock Exchange’s annual top-performing stock (1979 and 2002).
Full Disclosure: I own shares of Hecla Mining since September 2012, and share prices are down 12.5% since that time. Apparently my timing was late. If I had gotten in 4 months earlier at $3.74 per share (now $6.04), I would have a 61% gain.
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Last edited by WhatsUpDoc1958 : 11-10-2012 at 10:27 PM. Reason: changed Hecla's mines to Hecla's largest mines
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  #9  
Old 04-03-2013, 02:40 AM
yellowsnow yellowsnow is offline
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2011 silver mining costs are analyzed for 4 miners and yup, they are up from 2010.
http://silverdoctors.com/2011-comple...mining-silver/

Cash costs are for bozo's

Last edited by yellowsnow : 04-03-2013 at 02:46 AM.
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  #10  
Old 04-03-2013, 02:55 AM
sumrtym sumrtym is offline
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You can keep trying to talk it up all you want, but mining costs are not anywhere near what you're quoting. For one, the majority of silver is a byproduct of other mining. As such, it actually is recorded by a number of mines as a NEGATIVE cost. Mines were profitable at $4 silver less than 12 years ago. They can be today as well.

According to the 2012 World Silver Survey, the cash cost for mining silver in 2009 was $5.02 an ounce, $5.47 in 2010 and $7.25 in 2011. However, again, since silver is mainly a byproduct, silver is generally recorded as a bonus to offset mining costs of what is the TARGET metal. Thus why many mines have a negative cost associated with silver. And that is also why silver can still be mined at under $4 an ounce despite the above numbers at a profit.

Quoting silverdoctors, etc., sites that do just that...doctor silver facts...in order to pump sales of the metal is also not wise. That's the whole reason their sites exist after all.

Last edited by sumrtym : 04-03-2013 at 03:10 AM.
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