Santacruz Silver Mining Ltd V.SCZ

Silver/Zinc Fallout As Rising Energy Costs Close Smelters

[Blazesb]

From the Kereport:

Richard Tracy

Apr 16, 2022 16:38 AM

Even though the price of zinc has been rising now close to $2 per LB. the cost of energy to smelt zinc is so high that the zinc smelters can’t afford to smelt the zinc sent to them by the producers. This will have a knock off effect on the silver market. Most silver comes as a by product of zinc and copper base metal miners. It will put a premium on the price of silver as more and more smelters shut down. This is particularly true of European smelters.

 

Traditionally silver has traded at a 15 to 1 ratio to gold. Silver is the monetary metal of the lower and middle classes. Eventually Silver will revert to it’s mean and if gold is selling at $3000 an ounce Silver will be at $200 an ounce. Silver has a lot more room to run than it’s peers. DT

 

Reply

 

[tarnoir]

I believe 15:1 was like a hundred years ago and in modern times it's never been near that. I think during the Hunt Bros. squeeze might have gotten to 20:1 but was very short lived. I get his point but these guys keep using these antiquated ratios to hype things. Silver pundits have been crying $200 silver for years. Good grief, we can't even maintain $25 for any length of time but they

[Blazesb]

I'm not holding my breath waiting on $200 silver either.  Ratios are handy...kind of off the cuff...fun.  I can see $50 silver in this cycle meaning the next 1-4 years.  I just want to see numbers for an entire quarter of the new SCZ...meaning the 2nd quarter. Smelting fees are a real wild card.  I expect them to rise. Glencore is not a charity...I'm showing my

[miscstuff]

"I believe 15:1 was like a hundred years ago and in modern times it's never been near that..." Right, current  norm is usually in the 75/1 to 80/1 range. As of 12:45 today is was 79/1. Silver went down 3% today and gold .75% which put it at the higher end. Silver has many modern industrial uses including electronics, solar panels and electric vehicles. Silver prices are no

[Blazesb]

Of all the industrial metals silver is the one no where near its all time high.  I like that a lot. So, silver as money...silver as industrial metal. It's like the gold/silver ratios.  I don't think about them much.  It's not a competition. Silver's future today is brighter than at any time in history. Cheers.  

[Photobug1]

Agreed, the closest we get to is 29:1 in 2011. We may see that again some time at the next peak.