This MUST be the bottom in Silver and here is why.....

[Twisted Titan]

Just think about it logically....



With the price Sub20 You have been seeing a flurry of smaller mines shutting down,being bought out or mothballing projects until better prices come around


If they slam the price to 15 or dare I say 12.

Even the biggest producers will cave under prices like that and nobody in their right mind will keep putting out product.



Which will set up a force majure in the Silver markets as supply starts to dwindle . The Paper price can be pegged to whatever fictious number they want but owners of the metal will set the PHYSICAL market and honestly until some sense of stablity returns I dont see anybody willing to sell into a whipsawing Firestorm.


For ex We all remember when( a few years back) AMPEX closed down for few days until they got better confirmation of which way the market is going to move. The reason I cite AMPEX is because they are not a rinky dink fly in the wall operation like NWTM


So is my reasoning fair??


What sayeth The GUSSER's?

[Shami-Amourae]

Silver was pretty much under the cost of production in the 1990s to early 2000s:
http://www.futuresbuzz.com/si.bmp

It was still mined though as a byproduct of other metals. There are more investors now than ever, so it could be different this time.

[aeondaze]

Yep, I totally agree. The bottom has to be somewhere between $12 and $20, most probably midway at $16 to $15. Whether its gets to this point or not is anyones guess.

What I've been thinking is along these lines, that if they can't control the supply that already exists above ground and lets face it, all that this drop has caused is more physical buying, which contradicts the aims and goals of their manipulation, then they'll continue until they stifle supply. They need to shut all the gates so the peasants have no where to run when the bail-ins begin.

Their first attempt at controlling the markets was via sentiment. They figured if they could kill this and turn the PM's into a bad story then they would be successfull. They figured that the peasants were stupid enough to accept the paper price as the price for phsyical. Clearly this didn't work out so well for them, hence the massive decline from $27 down to $22 then further down to $18.50.

This indicates to me that the bail-ins maybe just around the corner. All they need to do is keep the price moving sideways (or lower short term) for an indefinate period and all the smaller producers will be crying uncle to their creditors and the majors will reduce production or just refuse to sell and simply accumulate until price imrpoves. With supply constrained, delivery will be cash settled then the games can begin...forced draw downs from the peasants accounts around the globe, combined with a MAJOR stocks correction. Maybe even both bonds and equities take a hit simultaneously like we've been seeing over the past three weeks. The goal is to make sure there is nowhere to run as they undertake the great grab for cash they've been planning since before Cypruss.

We just need to sit tight, this could take a few more years yet unfortunately...

[aeondaze]

Silver was pretty much under the cost of production in the 1990s to early 2000s:

It was still mined though as a byproduct of other metals. There are more investors now than ever, so it could be different this time.

I worked in metallurgical research during these years, it was a tough time, especially as the nineties dragged on and inflation hit everything except PM's. Every project I worked on eventually got shelved until about 2002, and we were at the cutting edge. Look up https://en.wikipedia.org/wiki/Albion_process - that was me - I did all the benchscale testwork (singlehandedly) and a lot of the mini-pilot stuff for this process. It was my sugestion that we try atmospheric leaching with O2 after flotation and fine grinding. This is now the benchmark for cost effective efficient extraction. Xtrata now owns the technology.

Everyone within the industry that had any brains knew it made no sense that everyhting else was going up price wise but the PM's just stagnated like an old lady that couldn't get out of bed. I was young and curious and asked someone I worked with who was fairly astute and he said that gold and silver are too important for the big boys to let out of their sight. Gold and Silver are the keepers of the bankers dirty little secret; that their paper is essentialy worthless.

[Twisted Titan]

Awesome post Aeon

I owe you three mercury dimes

[gunDriller]

the Cartel is/are not complete idiots, but they work with & for complete sociopaths - the US gov.

so i do not understand their behavior relative to Gold - the Price Smash which started April 12 has had the effect of 'emptying the cupboard' AND shuttering some producers.

the same is true for Silver. people going into out of stock conditions, and miners shuttering facilities.


when producers & resellers go into 'out-of-stock' conditions, it might reinforce the official narrative "not only is the bull market over, now you can't even buy any. Gold/ Silver sucks."

of course there is always reality to deal with. the tiniest trickle of significant investment money into PM's and the prices take off, like an upside-down version of the Cartel's price slam. as we saw last Friday June 30, which was presumed to be short-covering related to end-of-month, end-of-quarter.

empty Gold & Silver cupboards, worldwide consumption at 3 times the rate of production - it makes me wonder if the Cartel has 'further plans'. are they really going to create a buying opportunity for people that detest them, that detest their fiat money, and then let us profit from our belief in Precious Metals ?

but maybe this is just the way manipulated markets are. they don't worry about political dissidents making a few bucks, because 'they' run the military & homeland security & can print all the fiat they want, and buy 99% of what is for sale.


i think it's important to remember that Silver can easily reach price levels previously associated with Gold.

you can currently buy a 10 ounce bar of Silver for near $200. if someone offered you a 10 ounce bar of Gold for $200, would you buy it ?


overall, i think this is the Mother of all Stacking Opportunities.