What are the Dynamics and Future of Gold Prices

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Thank you for a good list of stocks and industries to look at for investment potential. It seems that there was no mention of Gold (except for Goldman Sachs).

I am wondering if you have an outlook / prediction for price of Gold (the metal, or the miners, or Gold Vaults, or ?).

Apparently (as most people feel) the price of Gold is based on the cost of finding and mining Gold, as well as the demand for Gold. High demand leads to a higher price for Gold.  High price and high demand provides more profit for the miners.  As the price of Gold rises, there will be more prospecting and new discoveries.

It seems that new discoveries of Gold Metal are becoming less frequent and of lesser amounts (in Ounces per ton). As a result of dwindling discoveries, the Gold Reserves (Gold in the ground) are falling rapidly. It seems that there may be a shortage squeeze that leads to a gigantic price rise for Gold (until other materials are substituted - if substitutions are possible).

I understand that there are hundreds or thousands of Gold mines in our world, mainly near the major fault lines (Ring of Fire).  I am wondering what the near and long term future of Gold price is likely to be (just comparing production capability of the many miners - big and small with demand). These miners have diverse costs of mining and producing Gold (from say $400 per ounce to say $1300 per ounce).  At today's price of Gold, some miners will have little profit and may fold and others will make a good profit, will succeed and will have funds to do more prospecting and to obtain additional land to mine.  I am interested in how the dynamics will affect the price of Gold in the future.

I understand that there was a recent discovery of a large deposit of over 4000 ounces per ton. (Is it real or is that just a promotion?) That discovery may lead to an increase of the Gold reserves, or may be "just a drop in the bucket".

So, I am still wondering what will happen to the price of Gold.  Will the reserves continue to decline, will the big Governments continue buying Gold, Will investors increase their holdings because of fear, will Industrial uses of Gold rise (for the electronics of Electric Vehicles), will jewelry purchases increase?

From much worrying and corrosive care I would be free if you would choose to educate me.


SA Editor Daniel Shvartsman
  • Under review

Gene, thanks for the message. This isn't a great forum for us to answer this question, but we can help direct you to the right place. What were you referring to when you wrote about the "good list of stocks and industries"?