Source
r/Wallstreetsilver•
SilverBoating

Discussion about miners witholding supply

Silver/Gold Miner Discussion

So i was watching the interview with Keith Neumeyer where he talked about witholding silver supply, and that they can only do that to an certain extent because they have to pay employees and different bills. But how about they just make an website and sell their stuff directly to us, only thing they have to do is pour it in a certain form and stamp it. That way they can make tons of more money, and we get the silver cheaper. No middle man taking huge premiums, and the list of advantages goes on..

Posted Apr 22, 2021, 1:12 PM UTC

3120
DanDaly65•

I recently spoke directly with the investor relations officer about this. According to him, they will be allocating more silver for investor direct bullion sales. It’s basically a market test but my argument was the same. Don’t sell it to the corrupt bullion banks, sell more direct to the people. Will be able to capture a dealer spread and premium. Let’s see how this goes. AG is the premier silver miner.

4
SilverBoatingOP•

Of they would make 10oc bars but 90% or something, and make them a bit purdy 🙂 just imagine how much of us will be piling in..

1
DanDaly65•

Keep watching their bullion store. This is supposedly going to happen. I don’t know the actual volume increase but the bullion store is a very small budget item for them.

2
SilverBoatingOP•

And hopefully more miners that follow!

1
SilverBoatingOP•

Oz* srry

1
alRededorr•

WSS has been around for three months. The miners have been in business a long time. Hecla (HL), which produces one-third of US silver, has been around for 166 years. They have survived a pretty rough period the last decade and now have to cope with shrinking grades, increased environmental regulations, and rising production costs from inflation.

I think the miners generally support what WSS is doing, as Keith says. But they first want to know WSS is durable, not a fad. Then, it takes them time to shift their biz models.

3
SilverBoatingOP•

Thats reasonable. Not much to say about that. 🙂

1
SilverbackViking#SilverSqueeze•

They would need to invest in capacity to fabricate bars.

Sure they could, but this would not be a short term decision.

A high price actually gives them more scope to hold back sales, it's the big miners selling Silver as a byproduct that could afford to just stop selling it at any time.

They are flush with cash and it's only a tiny portion of their income, my understanding is that's about 70% of the Silver production globally.

If anyone knows this please fell free to share. :)

1
SilverBoatingOP•

I know it cost a lot more to make 999 fine product but if they also make things like 90% but much cheaper im pretty sure there will also be a market for that. If there are some hobby anthousiast who can make nice bars, how much of an investment would that be for a miner to expand just a little bit for a pretty solid profit?

2
SilverbackViking#SilverSqueeze•

As mentioned it's not cost, it's time.

This would not be ready for months likely.

Not to mention to pay for this they would actually have to sell more Silver.

Some Gold miners refine bars themselves, makes less sense for Silver due to so much industrial use which actually doesn't require it to be refined.

1
SilverBoatingOP•

Why would it take months? There are people that can deliver a website in less than 1 month, buy equipment to melt, put some people on it and off you go.

2
SilverbackViking#SilverSqueeze•

First you need to get board signoff on the investment.

The you need to source the equipment.

Then you need to have equipment installed and staff trained to use it.

All of those stages cost money, which as I mentioned can only be raised by selling more Silver at current low prices.

I'm not saying it's a bad idea, it's just not one that will help the current squeeze as it would actually add product to the market right now instead of taking it off.

1
Vance87•

https://store.firstmajestic.com/

1
SilverBoatingOP•

Yeah i guess my message was a bit vague, i was referring to other miners actually doing this stuff. I do know about the first majestic shop :)

1