Mel Tomyn

We're being told that #Silver is headed back to $30 an ounce or less, and that it's going to consolidate in that region for years. Let's entertain that thought for a minute. Right now, the average all in sustaining cost for primary silver mines is about $30 an ounce. If silver goes back to that price and stays there for more than a few months, these mines will no longer be profitable and they will have to shut down. Since inflation is still here and their costs are steadily rising, this will happen sooner than you think. Yes, it's true that most silver mine supply comes as a byproduct of the mining of copper, lead and zinc, and that base metal mines are largely insensitive to the price of silver. But 25% of the mine supply still comes from primary silver mines. Kill their profits, and you kill their production. That's 200 million ounces per year gone. We are being told that industrial supply has topped, and that producers are "thrifting" and reducing the amount of silver that they are using. How much did industrial demand drop in 2026? a measly 3%. And of course, once the price of silver drops back to $30 an ounce, the incentive to do that will disappear. If anything, heavy silver consumers are likely to take advantage of the discount and stock up on cheap silver, as a precaution against another spike in its price. Sorry, but I'm not buying this thesis. If silver drops back to $30 an ounce, the continuous deficit in silver will only get worse, threatening to turn into an actual shortage. The only thing that can prevent that is a massive dishoarding of silver, by investors capitulating and selling it back into the market. This is probably what the banking cabal is hoping to see when they push the price this low. Whether this will happen or not, I'm afraid I cannot say. My gut feeling is that the public still needs to protect itself against inflation, and that most investors will have the good sense to hold.