The Phaserl


Eric Sprott: Silver is The Dark Horse

from The Daily Coin:

Mining silver and gold is a tough business. In order to mine either of these products (money) you need a steady stream of capital into your operation. As we have reported on a number of occasions throughout 2015, and into 2016, that capital is drying up or has left the market completely. This has been causing stress and strain within the mining industry, but not like you might think.

Some of the worlds largest primary silver producers are reporting record mining years. In other words, these mining companies have been digging more silver out of the ground than ever before. Most of these mining operations are located in Mexico, the worlds largest silver producing country, while a lot of the rest of world’s silver producing countries have shown slight declines or flat production for 2015. The mining operations in Mexico have been “high grading” their mines, meaning they are digging out the most productive part of the mine possible.

This does two things for the company. It cuts cost, which is great when you are dealing with a market that has suppressed the price of both silver and gold. It also means these mines are grabbing all the easy-to-mine product. If you dig out all of the easy product this year that leaves the harder, more expensive stuff next year.

This is exactly where we find ourselves today. These mines have stripped all the “low hanging fruit” within their operations. This can not and will not last. There is only so much “easy pickings” to be had. What this also does is allows the mining operations to continue operating instead of shutting down. With the current rates for gold and silver being at multi-year lows a lot of these companies have cut their profit margin by significant percentage points. One company recently announced a 44% drop in their year-over-year profits while at the same time reporting a new record in production. This does not make for a sustainable situation.

When I look at the $8 billion that’s gone into gold funds this month, you couldn’t begin to get that into silver in a year! There’s only 25 million ounces of silver on the COMEX and that’s worth only $400 million; you’d clean out the COMEX! I think only 20% of silver is available for investment, so that’s only 160 million ounces [annually].- Eric Sprott, The Daily Coin

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7 comments to Eric Sprott: Silver is The Dark Horse

  • Wise Canuck

    There are eight Silver Depositories the COMEX is just one – SRS Rocco Report states the 8 have a total of 155.6 Billion ounces of Silver with 129 Billion ounces in the Eligible category.

    That is still a lot of Silver above ground people can buy -why just think Comex???

    • KRELL427

      Substitute your billion for million then you make sense.

      • Wise Canuck

        Thank you to everyone for their keen eyes here is the exact amounts from SRS in ounces

        Total Registered 28,904,622.448
        Total Eligible 126,594,942.071
        Total Combined 155,499,604.519

        My error the last decimal point put me off

        • Craig Escaped Detroit

          It’s quite alright. We ALL make those mistakes and much more.

          Myself? I’ve been divorced TWICE. Ouch. That was a lot worse than a misplaced decimal point.

          The important thing to remember about the silver tonnage on planet earth, is the total “value” is probably less than $20 BBBillion dollars worth of it.

          So it’s really only a matter of time (probably SHORT time) until the available supplies are basically EXTINCT from the markets and the prices of the trickle of silver that will come to the market, will be astronomically high.

          That’s why we STACK.

          I Stack, therefore I win.

          SYAO. (Stack Your Asses Off.)

          This is gonna bring down a LOT of the Elite Banksters, and EVERY Billionaire who is rich ON PAPER is gonna be cutting lawns and washing cars for a bite to eat.

          I would NOT be too surprised, if at some point, you could buy a brand new car from the dealership, for 20-30 ounces.

          A nice private plane (4-8 seater) for less than 60 ounces. 3000 sq-ft NICE house, for less than 450 ounces. Nice double wide trailer sitting on 5-10 rural acres for about 40 ounces. Etc.

  • Craig Escaped Detroit

    @Wise Canuck,
    I think somebody missed a couple of decimal points.

    From a Zerohedge article (and MANY other places too), the entire planetary official reserves was LESS than 30,000 tons recently.

    That is about 0.9 Billion ounces. (900 million).
    Total WORLD value of ALL the silver at $20 per ounce is less than $20 Billion dollars for the world’s silver.

    That’s a VERY small WORLD SUPPLY, and Bill Gates could buy ALL the earth’s silver with less than 1/2 of his wealth. THAT’s why SILVER is in such SHORT supply and when the world discovers that it’s gone, the prices will go bananas & the USSA will become a wild banana republic.

    Even if the supply of planetary silver, was 50% higher, it will still be only about 1.5 Billion ounces (not the 155.6 Billion that you said SRS said.

  • Craig Escaped Detroit

    Silver is not the Dark horse, it is the SPARKLING RAINBOW UNICORN.

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