Miners spend billions of dollars every year pulling precious metals out of the ground. They toil mightily for years on end to produce these stores of value – but then they turn right around and sell all their gold and silver immediately in exchange for fiat currencies.

These businesses quite literally mine real money. But, like nearly every other business or individual, they still seem to be stuck in the fiat currency paradigm.

Of course, mining companies do need cash to pay bills. But to the extent that it’s not needed immediately, wouldn’t it make sense to hold onto some bullion to preserve purchasing power for future expenses?

A choice to hold back some of their production from the market – especially when spot prices are below the all-in cost of discovery, development, and production – could also positively impact the prices of gold and silver.

Mining companies that fail to appreciate that they are literally pulling money out of the ground may continue to disappoint metals investors. But miners that stop being kneejerk “price takers” can expect to be rewarded.

https://www.zerohedge.com/commodities/when-will-gold-silver-miners-start-believing-their-product