Has a price target of 18.70 on falling supply http://www.marketwatch.com/story/the-gold-crash-might-have-a-silver-lining-literally-2015-07-31
I'm not seeing any shortages. lol. Mining companies are simply merging and cutting the cost of production..... ....and there's plenty to mine. Not to mention around 30% is recycled.
Recycled product falls off sharply with price drops though. Much more than mining which is like a super tanker, takes ages to start up and stop, people recovering silver or cashing in bullion are very price reactive.
Would you say the oil supply is low? There's an oversupply at these prices... I don't see PMs going up until commodities gain some type of strength. Something they haven't seen in a long time.
The oil supply is high for the same reason mine supply is high, it costs so much to stop and later restart production that they put it off as long as possible and power through low prices unless they are absolutely forced to close down. Recycled input is different for the most part though, it's highly responsive to price.
Hmmm, deeply conflicting evidence/data and information as always with this damned shiny stuff I have recently been told that primary silver miners are producing more and that cash and all in costs are are still lower than prices are now. Same with gold. It wasn't long ago that $1200 was the floor and it couldn't go lower because the cost of production was around this level. Now only last week I have read that some of the big gold miners have miraculously improved costs and have break even around $900. Further to this, I actually requested some accurate information only a few weeks ago from one of the more level headed silver guys (who runs a website) and does a lot of research about above ground estimates and he admitted to not being able to tell anywhere near close and this guy is advocating buying the stuff even now. The BS around mining is something else. To the moon will be back any minute if it ever went away you see.
