That USA Today article by Matt Krantz, "Gold rush could signal trouble," was not that bad; except for part where he wrote: "... if gold continues to soar, companies can tap new mines and flood gold onto the market, which could bring prices back down."
If Mr. Krantz would have spent more time doing his homework he would have found that around 75 to 85 million ounces of gold are mined annually but only about 5 million ounces of those reserves are being replaced by gold exploration projects. There are only about 10 years worth of proven gold reserves left in the world at current rates of extraction. It takes years for new deposits to be found and proven up and then several more years before the first ounce can be brought to market for most deposits. Even shuttered mines take awhile to be brought back into production after prices rise high enough to make them profitable to mine again. Krantz seemed to have implied that if prices rise new production will soon flood the market and drive prices back down in a heartbeat, in reality it doesn't work that quickly. The bull market in gold could last for a long time before it plateaus out or declines. _____________________________________________________________ Get Paid to Surf the Web ---> http://www.epilot.com _____________________________________________________________ Promote your group and strengthen ties to your members with [EMAIL PROTECTED] by Everyone.net http://www.everyone.net/?btn=tag --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
