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Marathon Gold Corp T.MOZ

Marathon Gold Corporation is a Canada-based gold exploration and development company. The Company’s primary business focus is the exploration and development of its flagship asset, the wholly owned Valentine Gold Project, located in Newfoundland and Labrador, Canada. The project comprises a series of five mineralized deposits along a 32- kilometer system. Its prospects are located along the Valentine Lake Shear Zone and include Frank Zone, Rainbow Zone, Triangle Zone, Victoria Bridge, Narrows, Victory Southwest, Victory Northeast, and the Berry Zone. In addition to the Valentine Gold Project in the Central Region of Newfoundland and Labrador, the Company holds 100% interests in the Bonanza Mine, a former mine located in Baker County in northeastern Oregon, the Gold Reef property, an exploration property consisting of approximately 12 hectares of claims located near Stewart, British Columbia; and a 2% net smelter returns royalty on precious metal sales by the Golden Chest mine in Idaho.


TSX:MOZ - Post by User

Comment by MudCreekeron Mar 23, 2020 8:08pm
102 Views
Post# 30839908

RE:Whoa all the shutdowns at gold mines announced today!

RE:Whoa all the shutdowns at gold mines announced today!If gold was like other commodities that get used up, you'd be right to expect a big price rise when production capacity gets idled.  That's how OPEC works the price of oil, for instance.  

However, gold does not get used up.  Every ounce that has ever been mined in the history of man (and the prehistory too for that matter) is still available.  All of it forms the "supply".  The miners just increase that supply incrementally each year - by something under 3% per year, if memory serves.  Reducing the supply by a couple of percentage points shouldn't be expected to raise the price much.

What will raise the price, as Ridge pointed out, is all the money being printed in response to this crisis.   That raises the price of everything (inflation).  When one country does it, it raises the price of alternate currencies (i.e. their exchange rate)  but when every country does it simultaneously, the only alternate currency that's not being printed is the one that will go up in price.  That's precious metals.  
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