Capital Gold Group Report: Steady $1,000 Gold Price 'A Distinct Possibility'

|
A spokesperson from one of the world's biggest mining corporations has predicted that gold prices could reach $1,000 an ounce again due to a lack of new discoveries of the precious metal.

Alexander Davidson, head of exploration and corporate development at Barrick Gold, told Reuters that he is bullish on future long-term gold prices, with a steady $1,000 an ounce price a distinct possibility.

He said that the costs involved in the gold mining process are causing the global output to fall, although demand is as robust as ever.

"The industry cost structure is such that to find a mine, build a mine, or acquire a mine and then operate a mine the break-even cost for the industry now is probably in the $700 to $800 range," he said.

Earlier this week, David Galland, writing for Resource Investor, said that he believes the era for gold discoveries has now peaked, with new mines only yielding a fraction of previous outputs.

Capital Gold Group, gold group, gold, gold prices, gold news, gold coins, gold bullion, gold IRA, IRA gold



About this Entry

This page contains a single entry by John Jameson published on May 27, 2008 9:42 AM.

Capital Gold Group Report: Gold Jumps Above $925 on Bargain Hunting and Dollar Weakness was the previous entry in this blog.

Capital Gold Group Report: Gold Coins Preserve Wealth is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Powered by Movable Type 4.01