Live Business Chat
2015 Oct 11, 09:23:28 am *
Welcome, Guest. Please login or register.
Did you miss your activation email?

Login with username, password and session length
News: This is a friendly non-profit discussion group about making money. Click the "NOTIFY" button every chance you get to receive instant alerts about new information. We don't like spam. If your first posts are about something you want from us, it is probably spam, and you will be banned in forums worldwide. No soliciting! If you have problems with the forum, contact badon in the business chat.
   Home   Help Search Calendar Login Register  
Pages: [1]   Go Down
Author Topic: How Bolivian Miners Affect the Price of Silver in Your Pocket  (Read 1026 times)
0 Members and 1 Guest are viewing this topic.
Capitalist Pig
Offline Offline

Posts: 17830

« on: 2011 Mar 30, 10:59:46 pm »

If you have been watching the silver market closely, you may already know that there is a strike going on in Bolivian silver mines. Normally, this kind of thing doesn't really matter that much other than a temporary blip in silver prices.

However, these are not normal times. Silver is still in backwardation. People are demanding to receive the silver they have bought contracts on. Physical supplies are scarce - much scarcer than the market price implies (hence the backwardation).

Into this witches brew of market distrust the Bolivian mine workers seem to be serious about their strike. The union of workers at San Cristobal are demanding better working conditions. It's not clear from reports whether this means safety improvements or better hours and pay. For the moment, it doesn't matter because San Cristobal mine is at a stand-still with no indications that this will be over any time soon.

So, again, why does this matter so much? Well it turns out that this one mine produced 3% of all the silver production in the world for 2009. Changes happen at the margin. That kind of reduction in supply is significant.

Yet another check mark on the bull side.

Neal McSpadden
Get Coin Investments List Updates Here
The Primal Prepper - my blog about preparing for the worst while living the best
Capitalist Pig
Online Online

Posts: 10538


« Reply #1 on: 2011 Mar 30, 11:07:38 pm »

I keep looking for signs of slowing, and I'm just not seeing anything yet.

If families are a problem for the system, then we must reject the system, not the families.
Founder of the Coin Compendium (forum, blogs, calendar, images, donate, contribute).
LBC makes you rich, with a free ebay gift certificate awarded every month!
The Coin Compendium and the forum, censure, disclosure.
Do not PM questions. Answers should be publicly available.
Backup is not enough. Protect your data with MultiPar.
Writer of LBC Chinese coin investment articles (list).
About me: User:Badon -
Badon effect: type 1 to 8, type 9.
I type faster on a TypeMatrix.
Use my work. Give credit.
Coin, medal, whatever!
Coin storage advice.
FreeArc is amazing.
User contributions for Badon - Coin Compendium
Pages: [1]   Go Up
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.18 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!
Page created in 0.016 seconds with 18 queries.