Wednesday, 27 April 2016

Worldwide mine production of gold and silver

A commonly stated explanation for low (or high) precious metal prices is that "low prices are the cure for low prices". The underlying rationale is that low prices impose marginal mine production to close down thereby diminishing global output.  High prices would then allow mining companies to ramp up production by bringing on line mines and ore layers that were not profitable at the much lower precious metal prices.  These are simplifications, tending to overlook the essential.