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Low Silver Price Prompts Hochschild to Mothball Mine

CommissarJones
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Low Silver Price Prompts Hochschild to Mothball Mine

#201025

Postby CommissarJones » February 13th, 2019, 10:16 am

London-listed gold and silver producer Hochschild Mining said today it will suspend activity at its Arcata mine in Peru, citing protracted weakness in the price of silver.

Hochschild Mining wrote:Arcata was the Company's first mining operation and started producing in 1964. It has been an excellent operation with an outstanding workforce and supportive communities but the continuing low silver price over some years and current geological conditions leaves us no option.

This is only one mine, of course, but it's interesting to see any evidence of a supply-side response to low prices.

stevensfo
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Re: Low Silver Price Prompts Hochschild to Mothball Mine

#201162

Postby stevensfo » February 13th, 2019, 7:33 pm

I always believed that silver was obtained as a by-product mining other minerals. Are there really mines that concentrate only on silver?

Also, given that there seems to be a ratio of silver price to gold, if silver drops, then shouldn't gold come down as well?

How does this work?


Steve

77ss
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Re: Low Silver Price Prompts Hochschild to Mothball Mine

#201192

Postby 77ss » February 13th, 2019, 9:32 pm

stevensfo wrote:I always believed that silver was obtained as a by-product mining other minerals. Are there really mines that concentrate only on silver?

Also, given that there seems to be a ratio of silver price to gold, if silver drops, then shouldn't gold come down as well?

How does this work?


Steve


Certainly there are silver mines - gold being a common by-product! Check out Hochschild and Fresnillo.

As for the 'ratio' - it is very variable.

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Re: Low Silver Price Prompts Hochschild to Mothball Mine

#202853

Postby SKYSHIP » February 21st, 2019, 10:33 am

The Gold:Silver ratio is frequently a valid indicator for trading silver. In the past when the ratio exceeds 80x it has been right to buy silver rather than gold. That ratio currently stands at a high 83x.

Many, many silver miners. Two others are First Majestic and Pan-American Silver.


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