This is one of the reasons that I've never really understood the argument that silver (or most metals) can suddenly have production ramped up. Even those which are abundant like moly and aluminum require huge infrastructure to bring production on line. Copper is relatively abundant as well but recovery costs can be high. The people needed can be hired but even this takes time after decades of a shrinking industry caused by massive improvements in tech- nology have reduced unit labor costs and man hours.
Silver will prove one of the toughest of all metals to increase its production while the need will be the most pressing of all. Silver is not so abundant in the Earth and much of what did exist has already been dug up from shallow mines and consumed. Much of the current production is a by-product of cop- per mining but even this could peter out in time since silver is not always found in significant concentrations with copper.
Indications seem to be that silver coin is now beginning to feed the gap be- tween production and consumption. This can't last indefinitely either and when the coin is gone there's nothing left. The shortage is some 60,000,000 annually and doesn't take into account the actions of speculators.
Well said, and supported. Just recognizing that there's an increased demand and a shortage of supply doesn't change the problem, there's a lot yet to be worked out and worked on, as you say. This cloud seems to have a literal silver lining for all, but it's maddening to me that we subsidize unemployment in concentrated areas, while we import labor ( legal?) from other countries to these well-paid positions.
Did I understand your post to mean you think melts will increase significantly? One has to wonder what % of the mercs ( and others ) remain.
Thanks to Torinocobra and Commoncents for the link assist.
raz
Markets (governments) can remain irrational longer than an investor can remain solvent.
Did I understand your post to mean you think melts will increase significantly? One has to wonder what % of the mercs ( and others ) remain.
raz >>
It looks as though we're headed in this direction. I believe worldwide silver coin melt will approach 50,000,000 OZt annually within just a few years. Even a price increase in silver shouldn't prevent it. Most silver coin is US but there are quantities of various coins in oth- er countries.
Edited to add that probably more than 50% of mercs minted are available for melting at any foreseeable price and that about two thirds of world silver remaining is US.
Comments
http://ca.news.finance.yahoo.com/s/30032007/6/finance-mines-hit-lost-generation-miners.html
-Paul
TorinoCobra71
that silver (or most metals) can suddenly have production ramped up. Even
those which are abundant like moly and aluminum require huge infrastructure
to bring production on line. Copper is relatively abundant as well but recovery
costs can be high. The people needed can be hired but even this takes time
after decades of a shrinking industry caused by massive improvements in tech-
nology have reduced unit labor costs and man hours.
Silver will prove one of the toughest of all metals to increase its production
while the need will be the most pressing of all. Silver is not so abundant in
the Earth and much of what did exist has already been dug up from shallow
mines and consumed. Much of the current production is a by-product of cop-
per mining but even this could peter out in time since silver is not always found
in significant concentrations with copper.
Indications seem to be that silver coin is now beginning to feed the gap be-
tween production and consumption. This can't last indefinitely either and when
the coin is gone there's nothing left. The shortage is some 60,000,000 annually
and doesn't take into account the actions of speculators.
Well said, and supported. Just recognizing that there's an increased demand and a shortage of supply doesn't change the problem, there's a lot yet to be worked out and worked on, as you say. This cloud seems to have a literal silver lining for all, but it's maddening to me that we subsidize unemployment in concentrated areas, while we import labor ( legal?) from other countries to these well-paid positions.
Did I understand your post to mean you think melts will increase significantly? One has to wonder what % of the mercs ( and others ) remain.
Thanks to Torinocobra and Commoncents for the link assist.
raz
<< <i>.
Did I understand your post to mean you think melts will increase significantly? One has to wonder what % of the mercs ( and others ) remain.
raz >>
It looks as though we're headed in this direction. I believe worldwide silver coin melt will
approach 50,000,000 OZt annually within just a few years. Even a price increase in silver
shouldn't prevent it. Most silver coin is US but there are quantities of various coins in oth-
er countries.
Edited to add that probably more than 50% of mercs minted are available for melting at any
foreseeable price and that about two thirds of world silver remaining is US.