Gold on front page of New York Times

[davelj]

[quote=gandalf]Does anybody know, what’s the approximate production cost of mining an ounce of gold?[/quote]

I haven’t looked at gold mining companies in many years (and didn’t understand them well in the first place) so I’m going to get part of this wrong, but… there is not a straightforward answer principally because most gold miners actually mine more copper than gold in volume terms, and the gold is generally a byproduct (but the more valuable of the two, obviously) of copper mining. So, the miners tend to have a line item of how much it costs to mine each ounce of gold (in gross terms) and it’s netted out for monies they receive for the copper (and sometimes silver and other metals). But I believe that after netting out this other revenue and taking into account all of the costs, the range is about $300-$450/oz. if memory serves. And, obviously, it depends on how rich in gold (versus copper and other metals) the area is that’s being mined. So, it can be a very wide range. I believe that the cost of production (with all of the offsets) information is in every publicly-traded miner’s 10K, so it’s not a secret. I’m too lazy to look it up though. Understanding metals mining accounting is going down a bit of a rabbit hole – not nearly as bad as financials, but more complicated than the average company for sure.

[gandalf]

Interesting stuff, given all the talk about $2-3K per ounce.

[gandalf]

Interesting stuff, given all the talk about $2-3K per ounce.

[gandalf]

Interesting stuff, given all the talk about $2-3K per ounce.

[gandalf]

Interesting stuff, given all the talk about $2-3K per ounce.

[gandalf]

Interesting stuff, given all the talk about $2-3K per ounce.

[scaredyclassic]

even miners gotta make a profit. it’s just when you start talking about currency implosions, the current cost doesn’t mean much. been reading THIS TIME IT’S DIFFERENT a history of 8 centuries of financial folly. kinda makes me think maybe some gold is not a bad bet.

it may cost $500 to mine an ounce, but it probably only costs a quarter to make a $100 bill…

[scaredyclassic]

even miners gotta make a profit. it’s just when you start talking about currency implosions, the current cost doesn’t mean much. been reading THIS TIME IT’S DIFFERENT a history of 8 centuries of financial folly. kinda makes me think maybe some gold is not a bad bet.

it may cost $500 to mine an ounce, but it probably only costs a quarter to make a $100 bill…

[scaredyclassic]

even miners gotta make a profit. it’s just when you start talking about currency implosions, the current cost doesn’t mean much. been reading THIS TIME IT’S DIFFERENT a history of 8 centuries of financial folly. kinda makes me think maybe some gold is not a bad bet.

it may cost $500 to mine an ounce, but it probably only costs a quarter to make a $100 bill…

[scaredyclassic]

even miners gotta make a profit. it’s just when you start talking about currency implosions, the current cost doesn’t mean much. been reading THIS TIME IT’S DIFFERENT a history of 8 centuries of financial folly. kinda makes me think maybe some gold is not a bad bet.

it may cost $500 to mine an ounce, but it probably only costs a quarter to make a $100 bill…

[scaredyclassic]

even miners gotta make a profit. it’s just when you start talking about currency implosions, the current cost doesn’t mean much. been reading THIS TIME IT’S DIFFERENT a history of 8 centuries of financial folly. kinda makes me think maybe some gold is not a bad bet.

it may cost $500 to mine an ounce, but it probably only costs a quarter to make a $100 bill…

[stockstradr]

Gold on front page of NYT (and same story in other news media) is why I dumped all my gold several months ago.

I’ll risk later ridicule and make three predictions:

1) Gold will hit $800/ounce before it hits $2000/ounce.

2) When that happens – probably within 12 months – then I’ll back up my truck and load up portfolio with gold.

3) Within five years we see $3,000/ounce.

We are still in a strongly deflationary recession with deflation about to enter nasty second leg down. I say you do not want to hold gold in near term.

[stockstradr]

Gold on front page of NYT (and same story in other news media) is why I dumped all my gold several months ago.

I’ll risk later ridicule and make three predictions:

1) Gold will hit $800/ounce before it hits $2000/ounce.

2) When that happens – probably within 12 months – then I’ll back up my truck and load up portfolio with gold.

3) Within five years we see $3,000/ounce.

We are still in a strongly deflationary recession with deflation about to enter nasty second leg down. I say you do not want to hold gold in near term.

[stockstradr]

Gold on front page of NYT (and same story in other news media) is why I dumped all my gold several months ago.

I’ll risk later ridicule and make three predictions:

1) Gold will hit $800/ounce before it hits $2000/ounce.

2) When that happens – probably within 12 months – then I’ll back up my truck and load up portfolio with gold.

3) Within five years we see $3,000/ounce.

We are still in a strongly deflationary recession with deflation about to enter nasty second leg down. I say you do not want to hold gold in near term.

[stockstradr]

Gold on front page of NYT (and same story in other news media) is why I dumped all my gold several months ago.

I’ll risk later ridicule and make three predictions:

1) Gold will hit $800/ounce before it hits $2000/ounce.

2) When that happens – probably within 12 months – then I’ll back up my truck and load up portfolio with gold.

3) Within five years we see $3,000/ounce.

We are still in a strongly deflationary recession with deflation about to enter nasty second leg down. I say you do not want to hold gold in near term.

[Author]

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