Cost of mining gold ~$500/oz

[jimmyle]

If the cost of mining is less than half so why is gold at $1200/oz and rising? I have some gold stocks and have more than 10% profit but I am getting nervous about a bubble.

[meadandale]

The price reflects its perceived investment value not the cost of extracting it out of the ground.

How many companies do you think would be mining it if it was selling for $500-600/oz and cost $500/oz to extract?

[meadandale]

The price reflects its perceived investment value not the cost of extracting it out of the ground.

How many companies do you think would be mining it if it was selling for $500-600/oz and cost $500/oz to extract?

[meadandale]

The price reflects its perceived investment value not the cost of extracting it out of the ground.

How many companies do you think would be mining it if it was selling for $500-600/oz and cost $500/oz to extract?

[meadandale]

The price reflects its perceived investment value not the cost of extracting it out of the ground.

How many companies do you think would be mining it if it was selling for $500-600/oz and cost $500/oz to extract?

[meadandale]

The price reflects its perceived investment value not the cost of extracting it out of the ground.

How many companies do you think would be mining it if it was selling for $500-600/oz and cost $500/oz to extract?

[Eugene]

Maybe miners are cautious to ramp up production in less profitable mines, because they are afraid that investor demand will dry up at some point and they’ll be stuck with mines that they can’t economically operate.

Try to find some curves of mining output, industry demand, and investor demand over time.

[Eugene]

Maybe miners are cautious to ramp up production in less profitable mines, because they are afraid that investor demand will dry up at some point and they’ll be stuck with mines that they can’t economically operate.

Try to find some curves of mining output, industry demand, and investor demand over time.

[Eugene]

Maybe miners are cautious to ramp up production in less profitable mines, because they are afraid that investor demand will dry up at some point and they’ll be stuck with mines that they can’t economically operate.

Try to find some curves of mining output, industry demand, and investor demand over time.

[Eugene]

Maybe miners are cautious to ramp up production in less profitable mines, because they are afraid that investor demand will dry up at some point and they’ll be stuck with mines that they can’t economically operate.

Try to find some curves of mining output, industry demand, and investor demand over time.

[Eugene]

Maybe miners are cautious to ramp up production in less profitable mines, because they are afraid that investor demand will dry up at some point and they’ll be stuck with mines that they can’t economically operate.

Try to find some curves of mining output, industry demand, and investor demand over time.

[Author]

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