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<p>[QUOTE=&quot;gxseries, post: 368068, member: 4373&quot;]Yes Christian got it. </p><p><br /></p><p>Point is, you can&#039;t just look prices from historical price chart and talk about possible demand. You NEED to look at the supply as they always fluctuate from year to year and this can range from infrastructure problems to geopolitics and they EASILY affect the production level.&nbsp; </p><p><br /></p><p>Here is a good link about gold supply: </p><p><br /></p><p><a href="http://www.goldsheetlinks.com/production.htm" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.goldsheetlinks.com/production.htm" rel="nofollow">http://www.goldsheetlinks.com/production.htm</a></p><p><br /></p><p>One big gold supplier that is about to come online is one in Mongolia called Oyu Tolgoi. I can&#039;t remember how much % of gold production it would contribute to the global gold production but it&#039;s significant. </p><p><br /></p><p>Platinum is also another good example. Currently the biggest supplier is South Africa, holding about 50% of the global market and of course, if anything happens in the country, prices just jack up accordingly. An interesting supplier will be Zimbabwe with the potential of supplying about 15% of the current world production, which is <b>very</b> significant. The only thing stopping Anglo Platinum is the current crazy politics in Zimbabwe, making it difficult to negotiate with the government. What if it succeed? Platinum prices will just plummet and whatever platinum bullion that you bought recently will just drop. </p><p><br /></p><p>Point is, if you think mining companies are just sitting back and not doing anything to maximize profits in such high metal prices, think twice. I&#039;m just disgusted over how people love to speculate without going through the supply side. Economics 101: Supply AND demand <u>not</u> Supply OR demand.[/QUOTE]</p><p><br /></p>

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