Hi Ho "SILVER"

[Skol]

Silver price plunging, looks like no one needs it.

[JBmurc]

Yeah no one needs it skol LOL ..I just seen on CNBC electric cars still the way forward in the auto industry ..bet you don't even comprehend how many items right now you own needs silver ....right now where I'm sitting I can see least doz items that will have be it very minor amounts of silver to operate ,plasma tv,My SKy,remotes,Laptop,I-phone etc and this is only one of sectors it's used

"Silver has unique properties which makes it superior to any other substance. Importantly, it is the best conductor of electricity. This means that electricity travels faster while less of it is lost with silver as the conductor. If there is one thing that has impacted the world over the past 100 years it is the widespread use of electricity. Copper is the second best conductor of electricity and costs much less than silver. About 750 times more copper is mined than silver and much more of it is used in electrical applications. But when performance is critical, silver is the electrical king."


older article but shows how costly it has become to product silver esp from Primary sources

http://www.silverseek.com/article/si...tion-cost-8351
(Companies included were Pan American Silver, Coeur, Hecla, First Majestic, Silver Standard, Silver Corp Metals, Endeavour, Fortuna, U.S. Silver & Alexco Resources). Fresnillo was not included due to the fact that more of their revenue comes from gold than silver and Hochschild only reports their financial results on a bi-annual basis.

Here we can see that the top primary silver miners net income declined 78% y-o-y, twice the percentage of the gold miners. Not only did the primary silver miners total revenue fall from $954 million in Q3 2011 to $895 million Q3 2012, it did so while the group produced an additional million ounces of silver.

For those readers-investors who believe the silver miner's total revenue may have declined due to some in the group holding onto more of their silver production... let me share with you this tidbit. The top 5 primary silver miners in the group had total production of 16.5 million oz during Q3 2012. However , their combined sales that quarter of silver was also 16.5 million oz -- basically a wash.

So, the reason for the huge decrease in net income y-o-y was due to both the increased cost of sales as well as the much lower price paid for silver. By using the same approach as we did in the gold table, the top 10 primary silver miners net income per ounce declined from $12.06 oz in the third quarter of 2011 to only $2.53 an ounce this last period.

Furthermore, I decided to add up the same top 5 primary silver miners by-product credits which turned out to be 28% of total revenue. To be conservative I reduced the net income by 25% giving an estimated total silver net income of $39.7 million. This was the net effect:

$39.7 million / 21 million oz = $1.89 silver net income gain per oz

Again, this is my approach for getting a more "common sense" break-even cost for these primary silver miners. If we take the average price of silver in Q3 2012 of $29.91 (Kitco) and subtract the $1.89 silver net income we end up with an all-in cost of $28.02 an ounce. Even though the miners receive different realized prices than the average stated Kitco price in the example above, it turns out to be a very close indicator.

For instance, here is a sample of the average realized price of silver paid by top primary silver miners during Q3 2012:

Q3 average realized silver price

Pan American Silver = $29.27

Coeur d' Alene = $30.09

First Majestic = $30.48 (silver eq.)

Silver Standard = $29.37

Average price = $29.80

All of the figures presented above show that the break-even cost for mining silver is a great deal higher than the reported cash costs. Here we can see that the primary silver miners' profits have declined substantially as the average price of silver fell from $38 (Q3 2011) to $30 an ounce (Q3 2012). Moreover, four of the top 10 primary silver miners reported a negative income loss during the third quarter of 2012. It's safe to assume that if the price of silver fell to $25-$27 an ounce while costs remained the same, the majority of these miners would suffer net income losses.

[JBmurc]

THE SITUATION IN THE PAPER SILVER MARKET IS EVEN MORE DIRE THAN I IMAGINED


BIG TROUBLE FOR BARRICK AT PASCUA LAMA??

PASCUA LAMA IS ONE OF BARRICK’S LARGEST GOLD AND SILVER MINES THAT IS SLATED TO BE IN COMMERCIAL PRODUCTION BY MID 2013. HARVEY ORGAN BELIEVES PASCUA LAMA SHOULD HAVE BEEN IN COMMERCIAL PRODUCTION SEVERAL YEARS AGO, BUT PROBLEMS ASSOCIATED WITH GLACIERS HAVE KEPT THEM FROM DOING SO.

THERE HAS BEEN ON ONGOING DEBATE ABOUT THE GLACIER AND WATER ISSUES IN BOTH CHILE AND ARGENTINA AS IT PERTAINS TO BARRICK’S MINING OPERATION OF PASCUA LAMA.

I ALSO BELIEVE THERE IS BAD NEWS COMING OUT OF PASCUA LAMA. AGAIN, THIS REPRESENTS 25% OF BARRICK’S GOLD RESERVES AND IF PASCUA LAMA IS NOT ALLOWED TO GO COMMERCIAL, IT WOULD BE DISASTROUS FOR BARRICK’S STOCK PRICE, BALANCE SHEET AND CONTRACTUAL OBLIGATION TO SUPPLY SILVER WHEATON 170-200 MILLION OUNCES OF SILVER.

IF PASCUA LAMA IS UNABLE TO MINE GOLD AND SILVER WITHOUT THREATENING THE GLACIERS IN BOTH ARGENTINA AND CHILE, BARRICK WILL HAVE TO GO INTO THE FUTURES MARKETS AND PURCHASE SILVER TO DELIVER TO SILVER WHEATON AT ITS CONTRACTUAL PRICE OF $3.90 AN OUNCE.



http://silverdoctors.com/barricks-20...ilver-problem/

[Skol]

JB,
Think you may as well capitulate, throw in the towel and send me my $100 now. For you to win the bet silver will have to appreciate 36% by year's end, a virtually impossible task. PM's are like having leprosy atm.

Had to edit JB, silver's tanking, needs to go up another 3% in the last 2 hours.

[JBmurc]

Yes some crazy times in the tiny Silver market ,I see the Gold/Silver ratio 61 ....so Silver getting hit even harder than Gold....am I worried
not really(outside the fact I'd love to be buying more at these low prices to my kiwi-saver) ..with fiat currency's worldwide are fighting each other to keep their export sectors competitive (Have seen it happen with our business ..losing contract to US ) .....lower and lower rates......even the lucky country is running deficits ...they will soon lower rates and lower their rates ..so many trillions of dollars are chasing yield's ,, pushing up local currency value and yield ...look at NZD/USD cross rates crazy indeed...Apple got rid of billions of dollars worth of long dated bonds 20yrs+ 1.9% yield ....gold silver may not pay a yield but least I'm not holding debt

[Skol]

Yeah I don't think we'd see $10 or even sub $20 personal I think we've seen the bottom in the low 30's maybe that could get hit again over the next few months unlikely IMHO but time will tell

Posted on the 11/5/2011.

"I think we've seen the bottom in the low 30's".
lol

How about the low teens?

[JBmurc]

Posted on the 11/5/2011.

"I think we've seen the bottom in the low 30's".
lol

How about the low teens?

Low teens ....yeah right

The Top Two Silver Mines Production Falls over 15% in 2011
The largest silver producing mine in the world is the Cannington mine in Australia. Silver production at Cannington declined from 38.6 million oz in 2010, to only 32.2 million oz in 2011. The Fresnillo mine, which is the second highest silver producer in the world, saw its output drop from 35.9 million oz in 2010 down to 30.3 million oz in 2011. For sake of clarity, Fresnillo plc is the name of the largest primary silver mining company in the world that operates several gold and silver projects. Fresnillo is also the name of its largest silver mine.


Cannington’s silver ore grades fell from 453 g/t (grams per ton) at year end in 2010 to an average of only 352 g/t compared to the same period in 2011. This damage of declining ore grades becomes even more apparent when we look at the total amount of ore milled each year. In 2010, Cannington milled a total of 3,075,000 tonnes of ore compared to 3,213,000 tonnes in 2011. Even with a small increase in total milled ore in 2011 over 2010; Cannington’s silver production decreased 16.5%.
Fresnillo didn’t fare any better. Its average silver ore grade fell from 474.4 g/t in 2010 to 395.5 g/t in 2011. This 16.6% decline in average ore grade accounted for Fresnillo’s 15.5% decline in silver production in 2011. Furthermore, Fresnillo’s first quarter silver production fell an additional 4% compared to the last quarter in 2011 with an average ore grade of only 335 g/t.

http://www.wealthwire.com/news/metals/3100

[Skol]

JB,

Sell your silver, pronto, and buy some Japanese shares.

http://www.cnbc.com/id/100768312

[JBmurc]

JB,

Sell your silver, pronto, and buy some Japanese shares.

http://www.cnbc.com/id/100768312

No thanks but by all means fill your boots ...personal I'd be doing the opposite

[JBmurc]

JB,

Sell your silver, pronto, and buy some Japanese shares.

http://www.cnbc.com/id/100768312

LOL Nikki smashed like the DOW