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<p>[QUOTE=&quot;Andy, post: 40837, member: 645&quot;]Roughly speaking, the gold companies can manipulate the market to their benefit when they see a low dollar and/or high oil costs by basically slowing down the ore output to increase the amount of profit made as the price of gold goes up. And up it goes because of less gold on the market and as I stated a weaken dollar or high oil barral costs driving people to buy gold. </p><p>For example, Gold mining&nbsp; companies profits are leveraged to the gold price:&nbsp; For instance, look at Anglogold a small gold mining company compared to the giants of South Africa. They stated that in 1998 that the cost of production was $250 an ounce. With the gold price increase to at least $400 an ounce, Anglogold’s gross margin increased to $150 an ounce, a whopping 200%&nbsp; profit increase when gold went from 300 dollars an ounce to the 400 level. The other 30 or 40 dollars an ounce we could give away to inflational costs. (This is speaking in of course rounded out figures).</p><p><br /></p><p>So as long as South Africa is somewhat stable and the dollar is weak/oil is high..I would think that gold will go up and up with of course dips along the way.</p><p><br /></p><p>But what do I know. I was an idealist once....[/QUOTE]</p><p><br /></p>

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