<You will eventually be correct, because gold is a finite commodity>
> In essence, mon ami, you are saying that $265 gold is good enough to allow production to remain stable until there is no more gold on this planet.
Absolutely not.
Gold reserves now seem to be stated at $300-325 for most firms, which means that is the price where mining would be economic. I think there are about 700moz in reserves, which at a rate of 80moz, would get depleted in 9 years (if everything were static) One would expect (hope) that over the 9 years production would decline and prices would rise, so resources could be moved into reserves. There is also the possibility more reserves would be discovered. ( reality is dynamic, so I admit I do not know, just guessing )
Even if there are as much as 1.5 billion ounces and the future average mining rate is as low as 50moz, something serious will happen in the next 30 years, which we will hopefully be alive to see ( good health to you ! ). If all economic gold gets mined out, there will be a finite amount of bullion above ground (maybe 6 billion ounces) that should go way up in value, and there will be no gold mining stocks left since there is no gold left. |
