However, both silver and gold, particularly silver are at the margin right now. The margin means what it costs a primary silver producer to get it out of the ground and refined. It’s around $22 an oz. and that’s where we are. So anytime you can buy a commodity at or below, especially below the cost of production, and have some patience, you’re going to make some money.
I don’t think it can go a lot lower than it is right now. I wouldn’t say that it can’t but it wouldn’t stay there for very long. You can’t run any business at a loss for a long time. It can happen for a while and you can suck it up and move on but again, it won’t last for a very long time.
- Source, David Morgan via Silver Seek: