Sprott: Silver is Below Cost of Production

``The price has fallen so fast that it has been difficult for most miners to adjust their costs appropriately and the price for silver has dropped below its marginal cost of production. In a note last month, Dundee Capital Markets revealed that the all-in cash costs of the silver producers it covers fell an average of 13%, to $20.08 per ounce, during the third quarter of this year.4 With silver languishing at approximately $19, most major miners are losing money on every ounce produced. We have already begun to see production increases curtailed in this new environment, which should give further support to the metal price in the future.''