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: Alan Whirlwind who wrote (18863)	9/14/1998 7:53:00 PM
From: marcos	Respond to of 116764

The thing is, there's such a lag between price movement and its effect on production. It's not easy or cheap or fast to start up a mine or shut it down, there is enormous effort and cost and time involved in the design and feasibility studies and construction, and on the downswing you don't just flick the switch to stop production without considerable thought and confirmation that you will be operating in negative cash flow to the extent that it is worthwhile paying the shutdown and maintenance and startup costs. So while production does react to price, it is a long ways behind. This works against the PoG in the bear, but in the bull it will be twisting the tail.