Email of the day on the marginal cost of production for silver:
Comment of the Day

July 06 2018

Commentary by Eoin Treacy

Email of the day on the marginal cost of production for silver:

The average marginal cost of production for gold is currently about USD1,000 per troy ounce. What is it for silver? And its also per troy ounce? Thanks in advance.

Eoin Treacy's view

Thank you for this question which other subscribers may also have an interest in. This article from may be of interest. Here is a section:

By the 20th century, however, silver mining changed. A relatively small percentage of silver originates from traditional silver mines (approximately 25-33%, depending on the year). Nowadays, most of the world’s new silver comes from mines that focus on other metals. For example, a zinc mine in Mexico may pull out 65% zinc, 25% silver, and 10% lead. Since this mine would categorize as a “zinc mine,” the silver production is referred to as “byproduct metal.” Most new silver is byproduct.

That means it is very difficult to come up with an all-in sustaining cost for producing silver. However, at the beginning of the article the author reports that miners reported an average production price of $10.56 per ounce.

Silver is currently steady in the region of the $16 but needs to break above $16.25 to confirm more than short-term steadying.

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