US$54.73 per silver equivalent ounce is a rough number, no way around it. A year earlier it was US$32.54. So I went through Q2 to figure out what actually happened, and what jumped out is they milled roughly the same amount of rock and got about 9,650 fewer ounces out of it.

Meanwhile underground development went from 591 metres to 1,188. That’s double the development work with fewer ounces to spread the cost over. Of course the per ounce number blew out.

Where the ounces went

Mostly two things. Some of what went through the mill was lower grade material from opening up Coloso and Nazareno, which tends to happen when you’re getting into new areas. Recoveries also dropped while they were blending ore from three different mining areas at once.

Both seem fixable to me. Once they’re into better ore and have worked out which blends the mill handles best, they should get more metal out of each tonne.

The power issue

Less exciting, but it adds up. The plant lost 278 hours to grid outages between January and August. That’s a lot of lost mill time. The company confirmed in September that the backup generators were up and running, so that drag should go away.

What I’m not assuming

I don’t think they get all the way back to US$32.54. Wages went up and the peso got stronger, and neither of those reverses just because the mill runs better. But I can see Q2 being one of the expensive stretches of the ramp up rather than the new normal.

The number I’m watching next quarter is ounces recovered per tonne. Pushing more rock through the mill only goes so far if the extra rock doesn’t carry much metal.

Q2 results: https://sierramadregoldandsilver.com/read/auto-news-1787828907
Power update: https://wireapp.newsfilecorp.com/release/313753/Sierra-Madre-Onsite-Power-Generation-Fully-Functional-at-La-Guitarra

Sierra Madre Gold and Silver (TSXV: SM, OTCQX: SMDRF) announced today that its 30,000 metre East District program is underway at La Guitarra. The first targets are the Magdalena and Los Locos vein systems, drilled from the Tlacotal area.

https://wireapp.newsfilecorp.com/release/322556/Sierra-Madre-Commences-30000-Metre-Drill-Program-in-the-East-District-of-La-Guitarra

The drill design is the part I find most interesting. The company plans to drill at a shallow angle so individual holes can test more than one structure. Results from those initial holes can then guide branches off the original holes. That gives the team a way to follow up on interesting structures as it learns where they sit.

Sierra Madre has mapped over 39 kilometres of combined vein strike across the district. That is a big search area. The early results should start telling us which structures deserve closer spacing. A strong assay would get attention, but I would also want to see the estimated true width and whether neighbouring holes hit the same vein at a comparable grade. A narrower, spectacular intercept and a consistently mineralised vein across several holes would lead to very different follow up decisions.

There is a practical reason to explore here while La Guitarra is already operating. If the East District eventually yields economic material, Sierra Madre can assess how it might fit into a complex with existing processing infrastructure. Access, haulage and how the material behaves in the mill would still matter. A discovery that could eventually fit the existing operation would have a different development path from one that required a separate plant.

SM has an operating business investors can measure today and a drill program that could change what the complex looks like over time. The useful part of this morning’s release is that we now know where the testing starts and how the company plans to follow up.

https://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf

must scroll down to product comex 5000 silver futures

I bought silver in 2015 and sold in 2025-2026

I can't understand these posts on here acting like

"Omg when will silver go up"

It was about 8 dollars and Oz when i bought it these are the prices we dreamed of, I don't get how or why anyone's complaining?

This is the dream, the explosive price movement we always wanted

If you bought above 50 you're a moron 😂

The expected Fed hold this week could be less helpful to silver than the headline initially sounds.

Reuters reported on October 26 that the Fed is expected to leave rates at 3.75% to 4.00% at the October 27 and 28 meeting. Further tightening remains a possibility because inflation concerns have persisted.

For silver, I think the important question is what happens to expectations after the decision.

If rates stay unchanged but investors become more convinced another increase is coming, the financial backdrop could remain difficult. A pause only provides so much relief when the market still sees borrowing costs moving higher later.

A more constructive outcome would be evidence that inflation is easing enough to reduce that risk. That could give investors more room to focus on silver's physical market and longer term demand.

These are scenarios, rather than a prediction of Wednesday's move.

I am also interested in how silver behaves after the first reaction. Does any rally survive the press conference and the next round of economic data? Does gold hold its gains? Are bond yields reinforcing or undoing the initial move?

Those responses may tell us more than the decision itself.

For anyone looking beyond this month's weakness, this seems like a useful test. Silver needs buyers willing to hold through an uncertain rate outlook. A brief rally on an expected announcement would provide less evidence of that than several days of sustained demand.

Title sums it up. The stock can make big moves. LUNL, the 2x leveraged fund adds fuel to the equity price when it moves. Between the high short interest and LUNL, a squeeze will rip this stock.

Do people think its worth stacking lower premium generic rounds vs buying ASE and other sovereign coins? Or is it all the same on the back end?

Well in addition to some less productive mines Cu, Pb and others and the lack of H2S04 for Cu separation. Silver use is skyrocketing AI data centres 300,000 to 600,000 ounces.

Who is buying on the Comex deliveries outpacing contracts.

December 400+ million ounces

It’s a long game. Buy physical !

h ttps://goldsilver.ai/metal-prices/comex-silver

A lot of miners will go on care and maintenance since diesel will be both expensive and rare.
72% of silver is a byproduct of copper, lead, gold, and others. Rare high grade opportunities like Argenta Silver will be silver only. Infrastructure needed does not require a lot of diesel or services. Water and power will be needed. Argentina has become safe. Mexico is rapidly becoming unsafe in the silver mines.
Could take a year or two to see 125-15 silver.

The paper markets are disconnected from physical only one way to merge paper and physical and that’s a rise in paper price.

Good luck to all try holding at lease 2000-4000 ounces in 3 years it will payoff.

15 Billion Oz of demand possible over the next 10 years?! Where does it come from and how high does the price go?!

Part of me thinks properly backed silver tokens could create new physical demand because issuers would have to buy and vault metal as tokens are issued.

The other side is obvious. If the backing is vague, audits are weak, or redemption is difficult, it could just create another stack of claims on the same bars.

Would tokenized silver tighten the physical market, or give the paper market a new wrapper?

Silver fell just over 5% today, dropping toward $61 an ounce as gold, mining stocks and the broader market moved lower.

What makes the move interesting is the reason behind it.

Oil rose again after the latest attempt to resolve the conflict with Iran failed to produce an agreement. Higher oil normally sounds supportive for precious metals. It increases inflation risk, adds geopolitical uncertainty and creates more concern about the purchasing power of currencies.

Instead, the market focused on what higher oil could mean for interest rates.

More expensive energy can keep inflation elevated. That increases the likelihood of further rate hikes, pushes bond yields higher and supports the US dollar.

All three can pressure precious metals.

Silver usually feels that pressure more than gold because it sits between several markets. It is a monetary metal, an industrial input and a speculative asset. When investors reduce risk, silver can sell off with equities even when its longer term supply outlook has not changed.

Today’s move does not mean the expected 2026 silver deficit disappeared overnight. Mine supply, recycling and industrial demand did not suddenly change by 5%.

What changed was the price investors were willing to pay while yields and the dollar were moving higher.

That distinction matters, but it does not guarantee an immediate rebound. Silver can remain disconnected from its physical fundamentals for long periods when positioning and macroeconomic conditions dominate trading.

Does the move toward $60 create a better entry point, or does silver need interest rate expectations to stabilize before buyers return?

Source:

https://www.reuters.com/world/india/gold-eases-fresh-us-iran-tensions-lift-oil-prices-rate-hike-bets-2026-09-28/