Friday, 12 May 2017

Global mine production of gold and silver

While explaining very long wave patterns in precious metal prices, it is often stated 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.  Resulting 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 simplifications are tending to overlook the essential.