Are Gold and Silver gonna keep going down?

[smashycrashy]

Here're are a few basic questions that I don't believe has been addressed in this thread, and I'd very much appreciate it those of you who are more learned in this area would address them for me.

Some suggest that gold and silver are currently "undervalued" because the unit cost of production for each metal is higher than the current spot price for the respective metal.

1st Questions: What has been the historic relationship between unit cost of production of precious metals and same-period unit spot prices? In other words, when silver's spot price was around $6/oz (which was fairly "steady" until about 2004, right?), what was the cost of silver production per ounce?

Follow-up Questions: IF it is historically-true that cost of production was typically lower than spot price, then it follows that cost of producing an ounce of silver was less than $6 until about 2004, correct? Now I'm reading reports that suggest that the cost of producing an ounce of silver is typically north of $20/oz. Has the cost of production of precious metals really skyrocketed that significantly (from under $6/oz until 2004 to well over $20/oz today) over the last decade? If so, how?

1) There's a chart floating around regarding avg mining price per ounce vs spot prices I believe it stopped around 2012, CPM group published it. It's not worth my time to dig it up but if you are interested and feel like digging you can find it.

2) What publicly traded miners say the "all-in" costs are are way higher than the average price for mining the ounce across all miners. Most public traded miners are super leveraged and include certain costs that would go to zero in bankruptcy (where many are headed). There are huge miners who basically take a mine and take out everything from it, not just gold and silver. They then assign a cost to the gold/silver relative to everything else.. these miners cost for mining the gold/silver are very low (somewhere in this or another thread I referenced a miner whose avg gold per oz cost was something like $100 and they produced quite a few ounces). Using avg mining costs during times of high spot prices doesn't give a true picture as many miners will use their less productive mines (or more costly procedures) and save their productive mines for when prices drop back down.

[smashycrashy]

Gold is at/near it's floor it has bounced off before. But floors have a nasty habit of becoming ceilings if violated with volume. It could be an interesting couple of weeks, while I expect that gold should go higher from here at least temporarily.. it is just noise and the trend is downward.

[Cmpaycheck]

Gold is good

Guns, gold, and groceries. That works for me.

[PC9111]

The critical $1140 level that many gold bugs consider a tipping point was met / smashed.

Time to short the yellow stuff

[F8ality]

So being new to all of this and very intrigued about the prices doing what they are doing, what do you experienced silver/gold stackers suggest at a time like this

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[wpage]

The time to buy is now...

[PC9111]

Sell , prices will continue down

[therealnickb]

There's a whole lotta countries to consider that are relatively becoming more and more free as we eliminate and restrict our freedoms here.

Which doesn't answer the question.

[Ripon83]

Dollar is strong since euro, China and Russia currencies suck...don't expect strong PM market any time soon

[therealnickb]

The time to buy is now...

Catch that knife!

[k1dude]

Which doesn't answer the question.

Those are my secrets. I did the research. If my family ever has to flee the US because Americans have become communists (which is very likely), I would hurt myself by disclosing those escape plan countries. If I published it online, Americans would swamp those countries and their borders would shut down. The line would become years if not decades long. You should be applying for and maintaining visa's now.

Pay attention to my use of the word 'relative'. As the US loses it's freedoms, those countries begin to appear relatively free in comparison. We are losing our freedoms at a frightening pace under Obama. You can probably kiss this country goodbye if Hillary or Sanders gets elected. The coup will be complete. The insane will have total control over the asylum and the Constitution will be a meaningless footnote in history - which is exactly what the left wants.

[therealnickb]

LOL. I'm just not sure what to say about that.

[k1dude]

LOL. I'm just not sure what to say about that.

Never say never. Remember, my last home country experienced the exact same sequence of political events we are seeing here now. They too had naysayers claiming it could never happen there. It did, and fast.

Our family feels like we're living through "Groundhog Day". Same story, different country. The names have changed, but the game is the same.

[k1dude]

It looks like PM's have broken through some major resistance levels. Gold at $1132.50 and silver at $14.88. How low will it now go?

[therealnickb]

Never say never. Remember, my last home country experienced the exact same sequence of political events we are seeing here now. They too had naysayers claiming it could never happen there. It did, and fast.

Our family feels like we're living through "Groundhog Day". Same story, different country. The names have changed, but the game is the same.

I very rarely say never. But, I'm trying to think of which democratic republic with well armed citizens turned communist.