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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: marek_wojna who wrote (86371)	6/4/2002 10:02:55 AM
From: E. Charters	Respond to of 116764

The CB's sale do not increase the supply of gold. That can only be done by mining. As people are fond of saying, all the gold mined in the world, probably still exists in man's control. It is not consumed to any great extent. Therefore its supply can only be increased by mining. It should be seen, and I think I can speak authoritatively on the subject, that gold's supply, in reserves is only as abundant as it is economic to extract. Although much is made of the oversupply of some resource items in this world, it is plain that with the rapidly mushrooming population worldwide, the weak industrial capital markets, and the oversupply of money into paper, that the industrial capacity to supply gold to any demand has been reduced and in demand it has been outstripped. I only have to point to South Africa, once the leading supplier of gold in this century (which was made possible by Canadian Technology) -- is now doomed to become a second rate, high cost producer. The world supply of gold, is not certain to rise significantly due to this factor alone. It is plain that man's industrial resources such as energy and metals, are waning. The strategy of placing production offshore in third world countries in order to entice investors to circumvent governments will perhaps not be so cheap or that much a political advantage as was first thought. We run out, one way or another, soon enough and then we must go to the sea or the asteroids. Metal prices are not realistic in the long term, no matter how much scrap is being recycled. We must have new supply. And we need the benefits of the industry that harvesting the supply domestically entails. Millions of ounces could be mined cheaply abroad, and at home, within a single company, or few, with no fear of increasing the world supply to the detriment of price. When gold supply was perhaps 1000 tons per year, the population of the world was 1/2 what it is today. The development of such mentioned enterprise, I might add is withing the reach of relatively few enlightened, and not necessarily wealthy investors. More is known because of the failures of past traditional enterprise, that the probability of continued success and profit is high in the supply of metals. EC<:-}