It’s Time To Shake Things Up
I may have read something a few years back regarding silver mining companies doing something to hold back some production during a period of depressed prices. After 50+ years of price suppression of silver prices, it is long overdue for the silver mining companies to take some positive action. Two suggestions, would be for the larger companies in North America and Mexico to hold back, say 5% of their current production from the market. Doesn’t have to be a formal agreement(so they can’t be sued by the govt. or banksters for manipulating prices, how ironic would that be?) They know prices are going higher over time, just not how much or over what time frame. They all pretty much have to be profitable after any covid shutdown issues have been cleaned up, so they aren’t hurting themselves in any meaningful or long term way. The second suggestion would be for the major producers to contact the larger end users directly, to pursue long term supply arrangements, instead of selling everything at basically spot to refiners and middlemen. You know that even if we have anything other than a major recession, more silver is going to be used by electric vehicle companies, solar and wind turbine companies, 5G and other communication and electronic device companies, etc. I am sure that knowing supplies are getting tighter, some larger users would be willing to negotiate higher prices to lock in supply for even 25-50% of their expected needs, if it would guarantee availability and quantify their costs upfront, especially given that inflation is accelerating for almost everything. It is time for the silver mining companies to stop being patsies and start acting like business executives who are suppose to maximize profits and shareholder value. Otherwise,maybe some activist Wall Street investors need to take positions and advocate for measures like they do in so many other industries.