Posted by Francis Koh on 13 Nov 2014

PRIMARY SILVER MINERS: Losing Nearly $3.00 For Every Ounce Of Production

We can thank the Fed and Bullion Banks for rigging the paper silver price well below the estimated average break-even for the primary silver miners.

Before I provide my data from the silver miners in my group, I want to discuss the debate on PRECIOUS METALS MANIPULATION.  There seems to be a demarcation now between those who are more traders and the group that adheres to fundamentals.  While I admire anyone who can make a profit paper trading the precious metals, I find it quite interesting how several of the well-known names find it amusing to BASH those in the fundamental BUY & HOLD CAMP. I look forward to hearing if either Doug Casey or Dan Norcini finally admit that MANIPULATION has and is taking place in the precious metal markets as evidence is now surfacing.

If we look at the chart below, 7 of the 12 primary silver miners in my group had an estimated break-even of $18.50 in Q3 2014.  With the current price of silver at $15.70, this would be a net loss of $2.80 an ounce… on average.

7 of 12 Top Primary SIlver Miners Estimated Breakeven

However, we must remember, these seven miners are some of the lower cost producers.  Once we factor in the results for the remaining companies that are the more marginal producers (higher cost), this $2.80 loss per ounce will probably be higher than $3.00.


Furthermore, you will notice that only one primary silver miner is making money at the current price of silver.  This is Tahoe Resources.  Tahoe is an exception because it is mining 5+ million ounces of silver a quarter at a staggering 550+ grams per ton.  There isn’t another primary silver mining company on the planet producing silver in this fashion.  Thus, Tahoe is an exception to the rule and can produce silver at a much lower cost than any company in the group.