jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
I have been reading about how many of the mining companies are not doing as well as one would think with PM prices up so high historically speaking. Apparently, the cost to produce an ounce of silver or gold has gone way up over the past few years due to increased costs of production like fuel, labor, etc.
I don't have any links, but from what I have read some companies are really only making minimal profits or are breaking even with silver in the mid to high 20s. If that trend holds, it won't matter whether we get QE or inflation or anything else. The companies cannot go on forever losing money or not making much profit on what they mine. If prices were to drop or stay at this point, it would seem at some time down the road many of the mining companies will have trouble staying in business from what I have been reading.
In my opinion, if prices don't keep going up, some companies may have to stop production in some mines or they will go in the hole (no pun intended
).
Jim
I don't have any links, but from what I have read some companies are really only making minimal profits or are breaking even with silver in the mid to high 20s. If that trend holds, it won't matter whether we get QE or inflation or anything else. The companies cannot go on forever losing money or not making much profit on what they mine. If prices were to drop or stay at this point, it would seem at some time down the road many of the mining companies will have trouble staying in business from what I have been reading.
In my opinion, if prices don't keep going up, some companies may have to stop production in some mines or they will go in the hole (no pun intended
). Jim
