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Strategies & Market Trends : Ride the Tiger with CD

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To: Nevada9999 who wrote (125161)7/24/2008 6:57:45 PM
From: koan  Read Replies (1) of 313427
 
Nevada that is so important and I used to say it all the time and sort of forgot about it. Holds true for silver as well. But now most of the oxide ore has been leached and they have sulfide ore to deal with.:


Mine supply of gold also increased throughout the 80's and 90's because of the advent and application of heap leach gold extraction technology and discoveries in Nevada which was not a significant producer in 1980 and was #3 in the world by 2000. Mine supply even increased as the gold price was crushed from 1996 to 2001 as producers desperately took the high-grade core zones out of their deposits to survive. Mine production is falling now.

Mining and almost all resource industries are still reeling after a 20 year bear market and unable to respond to these rising prices. Most don't get it and call this a commodity bubble, but it is really a supply deficit that will take years to turn around.
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