In Tom Clouds newest update, he discusses many topics on rising precious metals premiums, silver miners production cost higher than the market price, skyrocketing debt and the coming rise in the gold and silver price. However, one of the most important parts of his video is the number of financial planners now calling him because they are becoming more interested in precious metals.
Tom starts by discussing the rising precious metals premiums on certain products since the summer. He then talks about the primary silver miners average cost of production is above the current market price. I have written a recent article on this, which he quotes, and it’s true:
As I mentioned, Tom was quoted the data from the chart below which shows how the top primary silver miners average All-In-Sustaining Cost (AISC) is now $16.10. However, the AISC does not include all costs and also deducts by-product credits. I believe the costs are even higher:
All the primary silver miners shown in red posted a higher AISC than the current market price. There were only two that posted a lower AISC. Even though the silver production cost is not the only factor that determines the market price, it is at least helps provides a floor. We must also remember, these AISC were based on much higher oil prices in the third quarter. Oil prices have now fallen by more than $20 from their highs. So, I believe the primary silver miners costs will continue to decline over the next several quarters if oil prices remain at the current level or fall further.
While the silver market dynamics Tom discusses are important, I believe the best part of his update is the knowledge that financial planners have been reaching out to him becoming more interested in learning about precious metals for their clients. I have spoken to Tom on the phone many times, and he says that the overwhelming majority of financial planners do not even bring up the subject of gold and silver to their clients.
When the markets start to implode, either in a deflationary or hyperinflation bout, I can see more and more investors forcing their financial planners to get them invested in gold and silver to varying degrees. As I have stated for the past several months now, investors will start to rotate out of falling stock and real estate markets and into precious metals to protect their wealth. It would only take a small percentage of financial planners and investors getting interested in gold and silver to push their prices to new record levels.
STAY TUNNED FOR NEW ARTICLES THIS WEEK:
I just wanted to let my readers know I will be posting some interesting articles this week, Wednesday and Friday. They will both be on the precious metals. The one on Wednesday shows the current Global Debt Level in reference to Gold Investment and what that means going forward and the article on Friday will show what is taking place in the Top 5 Gold Miners. Let’s just say, there are some very interesting facts and data in that article.
If you are new to this site, you may want to check out our PRECIOUS METALS WEBINAR. There is a lot of excellent material discussed during that webinar… for free.
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