Would really high silver price cause a lower copper price?

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Would really high silver price cause a lower copper price?

Postby Catfish4u » Fri Apr 26, 2013 11:17 am

Most 'mined silver' is a byproduct of mining for copper. If silver prices went way up it would be profitable to increase mining operations or open new mines. This would probably lead to increased copper supplies. Basic supply/demand principles suggest this would lead to a lower price for copper.

I am thinking a really high price for silver would be 'bad' for copper prices. What are others thoughts relating to this idea?
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Re: Would really high silver price cause a lower copper pric

Postby Lemon Thrower » Fri Apr 26, 2013 11:28 am

no, if anything its the other way around.

number of ounces of copper used is many times that of silver. so while copper is cheap they scale back on mining, which means less silver supply.

inversely, if copper is highly priced it means industrial demand is strong so non-investment demand for silver is likely strong also.
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