RE:RE:RE:RE:RE:Revised yearly production number of 45000 ouncesNo question there is tremedous upside and downside to POG.
The recovery of China economy will dictate future Gold demand.
China is the #1 producer of gold in the world, they currently consume more than they produce. 4th largest consumer in the world.
Domestic producers still suffer from a lack of scale. In 2000, there were about 2,000 gold producers - most of them relatively small and unsophisticated by international standards. Few are able to operate on a global platform, though the number of producers had shrunk to about 800 in 2007 after mergers and acquisitions and restructuring and consolidation. Most of these firms' technological standards and management are weak and inefficient.
There are even less now than in 2007, about half as many exist today.
Here are two charts, both have a stories to tell.
#1 the increasing production from China.
https://en.wikipedia.org/wiki/File:China_Gold_Production.png
#2 Price of Gold
https://www.retirementinvestingtoday.com/2013/06/im-buying-gold-gold-priced-in-british.html
Not everybody reads charts but it certainly does look ominous for POG>
It all depends on how far you look forward, or back for that matter.