Silver Supply is Still Tight

Overall, is the market still tight on the silver supply and the answer is yes. It is. But is it so tight that someone buying another box of silver eagles is going to take the market higher? No, it’s not that tight. But overall, it’s still I think a better investment than gold relatively speaking because it has been more beat up than gold.

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:

http://www.silverseek.com/article/david-morgan-%E2%80%9Cduring-last-bull-market-lot-people-gave-100-gold%E2%80%9D-12589