To:John Barendrecht who wrote (110)
From: John Barendrecht Wednesday, Jun 18, 1997 9:47 PM
Respond to of 79909
One thing I am wondering about lately. The central banks seem to be selling gold to convince people that owning gold is stupid. But in the process the are ruining the mining industry, especially the juniors. But aren't these the same mining companies that try to find other metals such as platinum and palladium? The world seems at this moment to be short on these due to the Russian government. You would think it in their best interest that more sources of these metals were found. Might be interesting to see what happens when we are short enough that we have to sell cars without catalytic converters. Also, we may have all the gold that was ever mined, less industrial use, but the same could probably be said of diamonds. The banks own less than 30% of the world's supply of gold and even if the price of gold doubled, how much jewelry would be sold for the gold content? If you buy a gold ring, the gold makes up less than « the cost of the finished product. Gold coins also have a hefty premium over the gold content. I realize gold is not the most used industrial metal. Once some of the higher cost mines are closed, wouldn't the owners want to see the price of gold higher for quite awhile before re-opening these mines? Also, some of the mines are gold/copper. If the price of gold dropped would they still mine for the copper. Or would the cost be too high without the gold to offset the mining cost?
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