But, before I provide a preview on my newest video update,Silver Price Update & End Of A Silver Mining Era, I wanted to clarify my position on “technical analysis.” There seems to be a large group of precious metals investors that have a negative KNEE-JERK reaction when I post some charts on technical analysis. They say its a waste of time to consider technical analysis when the market is rigged or controlled by the bullion banks (JP Morgan), the Fed and central banks.
While new and long-term followers are free to post any comments they desire about the pros or cons of technical analysis, my reason for doing so is to show what TRADERS ARE LOOKING AT and what they expect going forward. Traders, hedge funds and large institutions all study and follow technical analysis. Right now, they are the leading drivers of the silver price.
On the other hand, I challenge anyone who says that technical analysis is worthless, then why have Gold and Silver bottomed very close to their cost of production? For all of those Bix Weir Aficionados who agree with him that the Fed and Central Banks can push the price of gold and silver anywhere they please… then why hasn’t the price fallen considerably below their COST OF PRODUCTION? The detractors don’t seem to provide a good alternative answer.
A single silver nugget weighing 1,840 pounds came from the Smuggler Mine in 1894. Supposedly, the original nugget was even larger but had to be broken in pieces to be removed from the mine. According to the historical data, the silver nugget was 93% pure silver. So, if we do a bit of simple math, that nugget’s ore grade was approximately 27,000 oz of silver per ton. The largest primary silver miners today are producing silver at about 10-12 oz per ton.
In doing some of the historical research, it wasn’t out of the ordinary for ores in different parts of these silver mines to average 50 oz per ton, and even higher. I have seen many historical accounts showing more than 200 oz of silver per ton. Which is why the population of many of these early mining towns grow from hundreds to 10,000-20,000 in a decade or less.
Today, the world seems to have taken oil for granted. There are thousands of energy workers in each barrel of oil. Thus, the silver mining industry today would produce a fraction of the global silver without oil. In my upcoming video, I provide some very interesting data and information on tens of thousands of extra workers PER SILVER MINE would be needed if oil was removed from the picture.
Independent researcher Steve St. Angelo (SRSrocco) started to invest in precious metals in 2002. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.
Steve considers studying the impacts of EROI one of the most important aspects of his energy research. For the past several years, he has written scholarly articles in some of the top precious metals and financial websites.
You can find many of Steve’s articles on noteworthy sites, such as GoldSeek-SilverSeek.com