Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (70080)	5/23/2001 11:25:55 AM
From: lorne	Read Replies (2) \| Respond to of 116912

A must read for gold bugs. GOLD Miners seek greater market price sway Posted Wed, 23 May 2001 Gold mining companies should launch a strategy to better promote the metal, to have more say in the market and turn from being price takers into price makers, analysts and miners say. "The gold mining industry can change from being a price taker... now it's having a price fixed for it," says Paul Burton, analyst at World Gold. "There are opportunities to operate more like price makers and be among the mechanics who determine the price, " he said on the sidelines of a gold conference in Istanbul. Consolidation in the industry could bring more discipline and prompt cuts of uneconomic production and even strategic cutbacks, says Burton. Data on eight of the world's top producers - representing just under a third of annual output - suggest their total production costs plus interest, administration, exploration and taxation total an average $274 per ounce of gold. "In other words they need a price above $274 to start making money," says Burton, adding that spot gold traded below that figure for months. A senior mining executive at the conference, run by the London Bullion Market Association, disputes this figure. "One can't survive on $274 an ounce. We need more than that. We must do something to change this. We are now at the mercy of fluctuating exchange rates - banks fix the price for our product and speculators play with prices," he says. "It's unfair. We should promote our product more aggressively. "But such a move has to be funded by everybody in the industry with sustained funding, to combat the competition, which is luxury goods as well as diamonds and platinum." business.iafrica.com