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<p>[QUOTE=&quot;desertgem, post: 1989132, member: 15199&quot;]There are a lot of long term contracts in the mining (&nbsp; including PM) some as long as 5 or more years, so that the company doesn&#039;t have to worry about short term fluxuation in spot . You can look at the yearly SEC or the Canadian SEDAR site for a gold producer and see from the yearly report that most are safe ( balanced CALLs and PUTs action )unless PM were to be very level for 5 + years. Companies I am familiar with produce gold for currently around $1000 an ounce, but they wouldn&#039;t close shop if gold dropped to that, as they have some paid contracts to supply it at $1250 for a period and &#039;put&#039; contracts that gain value as physical gold loses. But it does give many large companies possible hard luck cases of companies that are operated with very low margins to overhead, and the richer company can purchase those mines ( especially if close to another of their operations). So deep drops for several months may bring some consolidation.[/QUOTE]</p><p><br /></p>

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