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.

Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (1962)	5/27/2003 11:34:06 AM
From: zonder	Read Replies (1) \| Respond to of 4912

The price of gold is a good measure of inflation Not sure I agree. In fact, I feel like objecting rather vehemently :-) I guess I did not understand your statement... >>>Which costs of gold miners would rise in correlation to the price of gold?<<< The price of gold is a good measure of inflation. Most companies, regardless of what they produce, have costs that are subject to inflation. This sound like an "A sort of related to B, and C sort of related to B as well, so A and B must be related". Price of pretty much everything is used in calculation of inflation. What does that mean? That gold miners costs rise in correlation to the price of gold? I don't think so. I would be interested to hear a cost breakdown of gold miners in general, though. Then we can really see if their costs would go up as the price of gold goes up or not. I would think there is a lot of pent up demand for wage increases and capital equipment which suddenly materializes as the price of what they sell rises. Certainly possible, but we are merely speculating here. I, for one, have no idea what percentage of costs salaries make up. I do know, however, that capital expenditures are NOT part of "costs" in an Income Statement - irrelevant to our discussion, in other words, as to whether or not the higher price of gold would increase the costs of a gold miner.