SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold Price Monitor
GDXJ 126.14-0.1%Jan 13 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: goldsnow who wrote (37151)7/15/1999 12:16:00 AM
From: Greg Ford  Read Replies (1) of 116856
 
There is not much that Tony Blair can say with respect to sales by Bank of England. It may in fact be the best thing that can happen to gold. At the current prices about 20% of production is uneconomic, that is the cash costs are higher that $260. The total costs for 1998 were over $260 before including exploration and G&A expenses. At this rate production should at least not increase and likely decrease substantially in coming years.

In my opinion this is the bullish case for gold:

1. Highgrading continues thereby affecting the viability of many mines;
2. Producers get comfortable hedging at these levels.
3. Commodity currencies strengthen.
4. Demand grows particularly in Asia.
5. US dollar weakens.

Production needs to be curtailed. If this occurs then even if central banks fill the growing supply / demand deficit the gold price will increase. Time is the issue. This scenario will not play itself out immediately. It will take several years, probably not before 2001. Remember when central banks sell gold the leasing pool to fund hedging is reduced. Couple this with the above factors and we should have an interesting market in a few years strictly on supply demand fundamentals.

Greg
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News