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<p>[QUOTE=&quot;Juan Blanco, post: 1609154, member: 41665&quot;]Long term? Not necessarily.&nbsp; Price of Gold (POG) has risen from $280 ozt to $1900 ozt, &gt; 6x -- the strongest incentive to increase production in history? -- and US labor costs have been stagnant. Oil only rose 4x, $22.81-$87.48. Yet US production has collapsed from 12% &gt; 8% of global output (<span style="color: #000000">U.S</span>. <span style="color: #000000">production</span> of <span style="color: #000000">gold</span> has been declining since 1998, down ~-37%.)&nbsp; That&#039;s not because of the Oil Price either.</p><p><br /></p><p>Also, SA was 15% of global output in 2002 but just 7% in 2011!&nbsp; Where is the presumed increase in production, with greater profitability?&nbsp; Are ~40% of the SA fields still not producing? What gives?<a href="http://www.zerohedge.com/news/2012-09-26/39-south-african-gold-production-now-offline" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.zerohedge.com/news/2012-09-26/39-south-african-gold-production-now-offline" rel="nofollow">http://www.zerohedge.com/news/2012-09-26/39-south-african-gold-production-now-offline</a></p><p><br /></p><p>12 years into a Gold Bull Market (long term) miners cannot ramp up operations?? And the notion Oil Prices are falling enough to create more supply has proven a chimera, 2008-2012 (medium term.) Oil has fallen nearly -50% since July 2008 (4.5 years!) Gold has increase ... yet production has fallen. The story now is WAGES.&nbsp; Real inflation abroad - not the US-fix Price of Oil - will continue to undermine Gold production.&nbsp; Oil priced in Dollars is less and less important anyway.&nbsp; The Arab Spring was a wake-up call to Dollar-beholden frightened satraps: SELL DOLLARS, BUY GOLD. And so they are.</p><p><br /></p><p>It&#039;s not just MENA. Around the world the Dollar Scheme against commodity producers abroad is unwinding, failing... trend hasn&#039;t broken, folks.&nbsp; POG <i>over time</i> (medium and long-term) shows that, a harbinger: more of what&#039;s to come.</p><p><br /></p><p>Gold is just the canary-in-the-coal-mine.[/QUOTE]</p><p><br /></p>

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