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Old 07-06-2013, 11:43 AM   #585
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Join Date: Nov 2006
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Originally Posted by Arkie View Post
Regular Joes selling their gold at selling cost are getting screwed. The average cost to mine gold over the last few years is about $1000 per oz. This includes some deeper mines recently that cost over $1500/oz. Those same gold speculators will take the regular Joe's lunch over the next few months.
Even presuming you aren't FOS, the only reason mining gold @ $1500/oz is worthwhile is if the price is inflated to > $1500/oz. It does not mean that $1000-1500/oz is the cost of mining gold in general.

It's exactly parallel to the tar sands and oil. All the morons who claim extracting the tar sands will reduce the price of oil don't understand the basic economics of the situation. The only reason extracting oil out of tar sands is starting to make economic sense is because of the high cost of oil. If the cost of oil drops again, it won't be economically viable to extract oil from tar sands.

Same with gold or any other mineral that requires significant effort to extract. The price of the commodity determines what operations are economically viable, not the other way around.
Fedaykin is offline   Reply With Quote