The cost of production is another reason for gold prices to go higher, said Jay Taylor, president of Placer Dome Inc., the world's fifth largest gold producer, who was also at the Denver forum. ``I know what the cost is of finding and buying and operating a gold mine. US$310 an ounce, or whatever it is today, is not enough. I do believe fundamentally that there is a relationship to primary mine supply cost, total cost that relates to the (gold) price,' Taylor said. ``I like a number that starts with a four, to give us something close to the risk and the difficulty in this business.'
Long-Term Rally
The positive shift in the outlook on gold from doom and gloom just months ago, may be the start of a long-term rally, said Peter Palmedo, president of Idaho-based Sun Valley Gold Co. ``The price of gold has climbed as much as 37 percent in the past three weeks. It is equivalent to August 1982 in the stock market ... the beginning of an explosive rise in the stock market. What's happening in the gold market today is very similar,' Palmedo said.
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