morning again,"so annual production plays only a small role in...

morning again,

"so annual production plays only a small role in setting the price, i.e. gold price could be sustained below most mines production cost indefinitely."


this is theoretical only.

This week china is on holidays - not buying gold.

Imagine if china ran out of it's own production of gold - which it will. Imagine if world production was far less.

The chinese at present are amassing gold for whatever reason - they are storing all their own and they are the biggest buyers on the planet.

If they continue on with their philosophy - whatever that is - and production stalled ------------ do you really think that production would only play a small role?

Are you sure it is only playing a small role at present?

The largest stackers of gold at present are 'adding' to their piles - not subtracting.

If production took a swan dive ---------- do you really think that wouldn't effect the price?

Gold as a store of value has thousands of years of history.

Do you really think that is going to change because of some flash in the pan like central banks or large funds etc?

Our relic dinosauran metal is only seen that way by a few in the West ----------- the vast majority of the world thinks different ------------------ and hanker for it - and if they can't prise it from the big physical holders - central banks - then they only have one way to get it ------------

producers.

That makes the supply demand thing - critical. Production does not take a small role. And production cost must take a major role in anything but the short term. Thousands of years of history and culture are not going to change in our lifetimes, no matter how old we are.

Add in silver and that silver is mainly a byproduct of gold mining and you can't bring up the same argument you have for gold production ----------- and the situation gets worse.

Imagine if silver physical supply comes to a halt or a big slowdown ----------------- what will happen?

Will the world wait around for gold mining production to get a bomb up it's bum?

The world depends - yes, depends, atm on silver --------- no silver or very short supply silver or very expensive silver - and we have a vastly different planet that we have now.

If gold mining falls over ----------- the price of silver alone will drive gold mining gates open -------- it's just that they will be called silver miners - with gold as the byproduct.

Either way --------- production is a very big deal -- it just doesn't look that way atm, theoretically, but in practice and culture - it is iron clad.

have a great day - good to hear your views

Pinto