Wednesday, July 10, 2013

Gold has to go up including gold Miners

Mining is very energy intensive and ten years ago, oil was $12 - $15 a barrel, now it's $95 a barrel. So that's just one of the costs. Labor costs have gone up because the cost of living has gone up in many of the countries where gold is mined. The price of gold isn't even high because it doesn't even reflect its production costs.

It shows you how prices need to go higher. Most mines are going to be shut down and there will be no supply and that all by itself means the price of gold has to go up because there will be no supply.

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