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<p>[QUOTE=&quot;Cloudsweeper99, post: 94717, member: 3011&quot;]Quick Dog - Check out the annual reports for the major gold mining companies and you will find that collectively they are producing gold much faster than they are replacing reserves.&nbsp; The cost figures you cite are cash production costs for existing mines and do not include the costs of new exploration, mining rights, environmental groups, permitting, building infrastructure, and building the mine itself.&nbsp; Despite the advances in technology and money put into exploration during the past several years, I believe only one new 5 million ounce deposit has been found that has enough favorable factors to be put into production.&nbsp; And you are correct about fuel costs.&nbsp; Newmont Mining has reported that energy costs represent about 25% of the total cost of operating a mine.&nbsp; Mines also use a lot of steel, which has also increased substantially.&nbsp; All things considered, it is less profitable to build a new mine now for many companies than when the price of gold was 40% lower than today.</p><p><br /></p><p>None of this is a guarantee that the price of gold will rise in the short term.&nbsp; Longer term, the price probably has to go higher unless demand for gold falls a lot.[/QUOTE]</p><p><br /></p>

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