David1763 Wrote:
May 05, 2013 8:48 AM
Gold and silver are mined based on price. As the price goes up, certain mines become economical to work. As the price goes down, production is idled. So as the price goes up, the supply also increases with a certain lag as facilities are again brought on line, or new areas become feasible to mine. The demand is based on herd mentality, so very difficult to predict. According to this author, sales are way up, but pricing is low. Sounds like he is pimping the product. It would be much better if he would have explained why the price is down, and that it might be a good investment opportunity. I suspect that people are dumping gold to invest in stocks, and with the price going down, the herd mentality jumps in for a rapid movement to stock....