Silver Miners Can Only Tread Water At This Point

Miners are having major problems. Production is now falling. Here’s the details…

Steve St Angelo interviewed on Wall St For Main St

To start off the interview, Jason asks Steve about how well primary gold and primary silver miners are doing at current metals prices? Steve recently put out an article… about the primary silver miners and he says that most of the miners are only able to tread water and not much else. Miners are having major problems continuing to cut costs and primary silver production is now falling.

Jason and Steve discuss how many of the larger primary silver miners including Coeur D’ Alene Mining, Hecla and Silver Standard (now SSR Mining) are getting out of the silver business by buying gold mines.

However, base metal byproduct silver production has not fallen.

Jason asks Steve about his theory of manipulating copper and lead prices higher (without any fundamental justification) to keep 100 million ounces or more of additional byproduct silver online?

Steve thinks that the oil industry will be dead in less than a decade. Why does he think this? Energy returned on energy invested or EROEI. Steve points out how in 2004 the big oil companies made $100 billion in net income with a lower oil price than today. Only 13 years later, those same oil companies made 90% less in net income at a higher oil price than in 2004!

Jason and Steve also discuss the shale oil bubble and how despite many billions being invested, some shale oil companies are up to their eyeballs in debt and can’t generate free cash flow or pay back their debt without selling off assets.

To end the interview, Jason asks Steve about his new venture, Commodity Ad Network which was created to help content creators getting screwed over by YouTube and Google.