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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (17508)	8/21/2005 12:49:08 PM
From: E. Charters	Read Replies (1) \| Respond to of 18308

What may happen with a lot of less than spectacular deposits is that they hit the "mill money wall". The prediction being that without well engineered solutions to mining problems or grade north of 0.30 the return on mining gold can be less than, say, opening a chain of donut shops. What some financiers fail to see is that gold mines especially are insensitive to market problems. Once you calculate with assuredness the costs of producing your product, the profit is "locked in" for many years to come. This has not always been so. With steadily rising costs since 1934 gold producers made meagre profits unless their operations were superlative, or really good grade. It is paradoxical that what people look at as high risk, is once the feasibility is done, very low risk. Getting to the fease is perhaps high risk, but not after. In fact gold shares should sell at a premium, not a discount, but market are never logical. We invest, it seems, from knee jerk reactions not cold, hard reason. EC<:-}