Message:

<p>[QUOTE=&quot;Blaubart, post: 1734653, member: 37498&quot;]That could very well be the average cost to mine gold today, but it&#039;s by no means true across the board.&nbsp; We have a large gold mine nearby that discloses its cost online.&nbsp; On their main page, it shows their average cost per ounce in 2012 was $708:</p><p><br /></p><p><a href="http://www.barrick.com/operations/north-america/golden-sunlight/default.aspx" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.barrick.com/operations/north-america/golden-sunlight/default.aspx" rel="nofollow">http://www.barrick.com/operations/north-america/golden-sunlight/default.aspx</a></p><p><br /></p><p>There are mines that can extract gold for less than $708, and there are mines that can&#039;t do it for less than $1000.&nbsp; If gold falls below $1000, those mines might suspend operations, and that would cause a reduction in supply.&nbsp; The more the price falls, the more mines cease operations, further reducing supply.&nbsp; If it falls way back down to $300 an ounce, much of the recycling efforts that have sprung up since 2008 will likely suspend operations as well.</p><p><br /></p><p>On the mining side of supply, keep in mind that gold mining is different than silver mining.&nbsp; Most silver comes from mines where silver is not the main product.&nbsp; So to calculate the cost of mining silver, they figure out the incremental cost of extracting the silver from the ore they&#039;ve already brought to the mill.&nbsp; This is not true for most gold mines.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in