Seeking Alpha

Mining silver still highly profitable

"Silver has the worst story of all the metals," says Archer Financial's Adam Klopfenstein, noting plentiful supplies and its tendency to move alongside gold.

HSBC expects a 3.4% increase in supply to 1.09B ounces this year alongside flat demand at 938M ounces. Partly fueling the supply growth are prices remaining above the all-in cost of production of $15-$17 per ounce, says the bank's Howard Wn.

TD's Mike Dragosits, says silver ends its six-year slump in 2014, thanks to a recovering U.S. economy boosting industrial demand for the metal. A Fed being slower than expected on tightening monetary policy should also provide a boost. he says.


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Comments (6)
  • Tas 2010
    , contributor
    Comments (270) | Send Message
    Anyone have an idea of which silver mining company is showing the best profits YTD?
    28 Apr 2014, 09:34 PM Reply Like
  • jamerson
    , contributor
    Comments (35) | Send Message
    it's not done yet. I would like to see some bottom /confirmation. no more games.
    28 Apr 2014, 09:39 PM Reply Like
  • Gomuge
    , contributor
    Comment (1) | Send Message
    I am wondering how, if cost of production is $15-$17 per ounce, mining companies could be profitable prior to 2008 when silver has always been under $15. Did the cost production dramatically increase in the last few years ?
    29 Apr 2014, 11:31 AM Reply Like
  • Tas 2010
    , contributor
    Comments (270) | Send Message


    I am certainly no expert, however looking just at oil prices they have risen significantly over the last decade. Granted, for a time oil prices were higher in the summer of 2008 but they quickly crashed after setting a new all time high. So yes, energy cost has risen significantly.
    29 Apr 2014, 12:32 PM Reply Like
  • gopa
    , contributor
    Comment (1) | Send Message

    29 Apr 2014, 09:21 PM Reply Like
  • user 101
    , contributor
    Comments (406) | Send Message
    Eveythng has gone up dramatically the last ten years or so. Why should silver be any different.
    30 Apr 2014, 12:04 AM Reply Like
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