At a bottom now for gold? Message Board

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Gold/Mining/Energy : At a bottom now for gold?

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To: Ming who wrote (1421)	7/14/1998 5:14:00 PM
From: Pete Schueler	Read Replies (2) of 1911

Ming, You state that "Thus the supply of gold on earth is readily increasing(for it does not only come from mine production), while demand remains constant." This is generally true but keep in mind that there is approximately 125,000 tons of gold existing in the world today. New gold production from mines is 2,400 tons/year providing a 2% growth in supplies each year(assuming all is recyled, some gold is lost for instance my new gold cap). If gold supplies were to track the world's economic growth it would probably need to be produced at a higher rate. Annual production is not creating a glut, it is the relative financial attractiveness of the existing supply vis-a-vis other assets that dominates the market.

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