Message:

<p>[QUOTE=&quot;desertgem, post: 2082953, member: 15199&quot;]Gold to financiers is a commodity, and as such, for a solid producing company ( as compared to exploratory), there are paper leverage devices which can allow keeping the plant and personnel working, even if the price&nbsp; drops below cost for several years. It would severely limit current cash flow, but the geologists know the capacity of the mine, and such an investment would have to be longer term than currently.</p><p><br /></p><p>Gold to those ,who plan to hold forever as a currency protection, should be buying increasingly as the price decreases, and this should provide support as the price decreases, but the amount purchased is insufficient to do so, and psychological drive to do so wanes, as prices drop under their last buy, so it is the paper market which will prevent the mines from closing down completely, but more consolidation will go on, and then these individuals ( paper holders, contracts, options) will be the big winners when gold prices go up again. </p><p><br /></p><p>In my thoughts, such a drop below or near the production costs favor greatly those who have a large reserve , credit, and long time period and unfortunately , it is those who depended on hard commodities for their &#039;life investment&#039; who will be the unfortunate ones.</p><p><br /></p><p>To be successful, one has to read all of the technical and financial papers and reports on the company websites. I prefer Canadian registered companies as the oversight seems preferable over the SEC.[/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