RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Does anyone seriously believe these projects will be mined?much of what you said i agree with. only speaking for myself i prefer leveraged plays. i spread my speculations and not everything is leveraged towards dwindling grades. but again where i disagree is that grades are and have been going in one direction. the point i was trying to make is inflation has not risen with the price of gold. $300 bucks an ounce was profitable and isn't now for miners. yes, much of that is inflation. but as much of that is due to dwindling grades. there are two things going on. inflation and grade. i agree that investment demand goes up and down. one hopes to sell when demand is up and buy when demand is down. all of these things are factors. so for me as i said i spread my bets. with that said im pretty confident in not just inflation but more importantly dwindling grades. and again, with that said. demand is down now. sometime in the future demand will be up.
carbide wrote: Yes, global cooling. It was a thing in the 70s, right? Now even to debate global warming, or climate change, makes one a social outcast.
Let's say depending on how you measure it, inflation is somewhere in the high single digits. Probably not double digits, except in certain urban geographies, e.g., Bay Area due to an economic boom of Silicon Valley taking over the world, raking in profits, paying big salaries, and driving up costs. I could believe 5-7%, but not 2-3%. Too many prices I see escalate at 5-10%, and only a few things are flat to down.
So let's also say gold is unlikely to fall much, and will rise over time. But the way you make money on the operations of a mine is to find one in the lowest quartile of cost, a rare deposit with superior economics. The way you make money on all the others is through stupidity: flipping it to another irrational speculator at the right time and the right price, a bit of a mug's game if you ask me. But that's the nature of the beast.