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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: regli who wrote (41112)	11/14/2005 7:35:32 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 116555

The real problem is that gold mined in any one year adds very little to the above ground stores. Something like 90% of all the gold ever mined in history is currently available above ground, so any one year's production is miniscule compared to the total and essentially does not move prices much if any. And producing it is very energy intense, so while marginal production will increase with increasing prices, it's not likely to be much of a factor in the price going forward. Which is one reason that gold has always been useful as a store of value.