Hello Haim and all:
Since supply and demand do not have anything to do with the current rise in gold price
I really don’t mean to offend anyone but I must differ on this. Due
to the low price of gold for some many years now, it hasn’t really
been very profitable to mine. Gold is constantly being discovered,
but due to low gold prices and mining costs it has not been
profitable to dig it up. People have still been buying gold, mostly
on paper. More gold has been sold than has been mined and it will
take many years to cover what is sold right now, not to mention what
will be sold in the near future as the price rises. With a possible
war comming and the way the economic situation is, more people want
to take physical possession of their gold. This is causing a big
shortfall in supply and when that happens, demand goes way up and so
does the price.
it will definitely go down after the war with Iraq. When and how much is pure speculations.
If enough demand for physical possession of gold persists, then the
mines that are just sitting there right now will start to produce
and the price will not drop until demand drops and demand will not
drop until supply is adequate.
Michael R. Mathews Sr. Victoria, Texas USA