the ridiculous prophecies, page-85

5hareholder

I question your implications regarding a 'supply squeeze'

I don't know what you case for investing in a gold miner is, and i am not having a go at you because your a spurs fan....

However, the case I often read for gold is that gold is money (not a commodity).

the argument for a return to a gold standard is that gold as money will be stabilising in contrast to fiat.

The reason for the stability is the abundance (yes i know it all fits in a swimming pool) of above ground gold. This abundance means that increased supply from mining won't have big impact on total above ground supply on an annual basis (or maybe even decannual basis), hence price stability.

Now if this argument is right, and one is buying a mine because gold is money, then lack of new supply will do little to the demand of gold, as there is a relative abundance of above ground gold.

Just some thoughts from a gooner