All this hype about production cost

[Pirocco]

it is infact 70% of ALL silver production around the globe is a byproduct of mining another primary metal. e.g. Zinc, Leah, Gold

Which commodity mining does NOT have byproducts?
That piece of ground known as "ore" usually contains a variety of elements, and usually they don't let it pass to the wastebin because the additional cost to extract another element is usually much smaller than the cost of the primary. Because same equipment can be used.

About the factor "energy", let's look at crude oil: http://finviz.com/futures_charts.ashx?t=QA&p=w1
Or heating oil. Or natural gas. The price seriously dropped during 2014, back to the level it was before the crisis.
Just to say, even the "measurement" involved variables can change the cost picture in a serious way.

 

[Court Jester]

it is infact 70% of ALL silver production around the globe is a byproduct of mining another primary metal. e.g. Zinc, Leah, Gold

Which commodity mining does NOT have byproducts?
That piece of ground known as "ore" usually contains a variety of elements, and usually they don't let it pass to the wastebin because the additional cost to extract another element is usually much smaller than the cost of the primary. Because same equipment can be used.

About the factor "energy", let's look at crude oil: http://finviz.com/futures_charts.ashx?t=QA&p=w1
Or heating oil. Or natural gas. The price seriously dropped during 2014, back to the level it was before the crisis.
Just to say, even the "measurement" involved variables can change the cost picture in a serious way.

yes but 70% of silvers global annual production is as a byproduct where it is NOT the primary metal / reason for the mine. I dont think any other metal is as high.

 

[Pirocco]

it is infact 70% of ALL silver production around the globe is a byproduct of mining another primary metal. e.g. Zinc, Leah, Gold

Which commodity mining does NOT have byproducts?
That piece of ground known as "ore" usually contains a variety of elements, and usually they don't let it pass to the wastebin because the additional cost to extract another element is usually much smaller than the cost of the primary. Because same equipment can be used.

About the factor "energy", let's look at crude oil: http://finviz.com/futures_charts.ashx?t=QA&p=w1
Or heating oil. Or natural gas. The price seriously dropped during 2014, back to the level it was before the crisis.
Just to say, even the "measurement" involved variables can change the cost picture in a serious way.

yes but 70% of silvers global annual production is as a byproduct where it is NOT the primary metal / reason for the mine. I dont think any other metal is as high.

It's hard to think without input, an accurate judgement requires figures.
Then, the margin value approach:
- imagine silver is only mined as sole element. Then what?
- imagine silver is never mined as sole element. Then what?
What does a "byproduct" property mean for silver, its price?
Imagine a main zinc miner, byproduct silver. If zinc demand drops, and price drops, the company will need to process less ore, and as a result, less silver will be produced too.
Things have different sides. An accurate judgement has to take into account all sides.
I've read alot claims based on a "byproduct" nature, and sometimes it gets as silly as a total contradiction.