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Latest cost to mine an ounce of gold

derrybderryb Posts: 36,823 ✭✭✭✭✭
edited November 18, 2016 3:18PM in Precious Metals

Q3 2016 all in cost is $855

"The bottom line is the major gold miners' fundamentals in just-reported Q3'16 were incredibly strong and bullish."

"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

Comments

  • cohodkcohodk Posts: 19,127 ✭✭✭✭✭

    Costs have been getting lower for years.

    Roadrunner will chime in now and say balderdash to those numbers. ;)

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭

    It takes fuel to power the machines that help people mine the gold. It makes sense that the aggregate cost has declined.

    And of course the major miners' fundamentals are strong, if they can produce it at $855 and sell it for about 50% more than that.

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,823 ✭✭✭✭✭
    edited November 18, 2016 7:35PM

    @Baley said:
    And of course the major miners' fundamentals are strong if they can produce it at $855 and sell it for about 50% more than that.

    lots of middle men and post mining fabrication costs between the $885 and current spot.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭

    @derryb said:

    @Baley said:
    And of course the major miners' fundamentals are strong if they can produce it at $855 and sell it for about 50% more than that.

    lots of middle men and post mining fabrication costs between the $885 and current spot.

    True. And even more "middle men" and their profits, fabrication and distribution costs, between current spot and "retail" for the wide variety of products, packaging, and opinions about the quality of the products and packaging. Everyone has their damn hand out to us poor end-users of the gold, don't they?

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,823 ✭✭✭✭✭

    More reason to be a middle man.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭

    No, thank you. Never had any interest in being any sort of middle man.

    Liberty: Parent of Science & Industry

  • cohodkcohodk Posts: 19,127 ✭✭✭✭✭

    @derryb said:
    More reason to be a middle man.

    .......and not a stacker!!

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,823 ✭✭✭✭✭

    stack the profits.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭

    Yup, stoke their fears, hype the products, take advantage of the suckers, and stack the profits. yay!

    Liberty: Parent of Science & Industry

  • TwoSides2aCoinTwoSides2aCoin Posts: 44,293 ✭✭✭✭✭

    Middle man is like the pivot point in a circle jerk

  • VanHalenVanHalen Posts: 3,992 ✭✭✭✭✭

    It oftens seems that middle man makes the most. Especially these days with more discerning consumers. Part of the reason so many corporations vertically integrate to eliminate them.

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    @VanHalen....Nice analysis.... Vertical integration was ideal for a long time in business...then customers started pressuring producers to send manufacturing overseas to reduce costs further.... That was bad. While I was in business, we opted instead to reduce our costs through lean manufacturing... worked great. Of course, the mining industry may well be different, I do not have experience there. Cheers, RickO

  • CaptHenwayCaptHenway Posts: 32,144 ✭✭✭✭✭

    @derryb said:

    Q3 2016 all in cost is $855

    "The bottom line is the major gold miners' fundamentals in just-reported Q3'16 were incredibly strong and bullish."

    That is an average cost among many different producers. Your mileage may vary.

    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • MsMorrisineMsMorrisine Posts: 33,088 ✭✭✭✭✭

    that's what they say their numbers are.

    I'm always skeptical of these numbers since it could be them just supporting the gold price.

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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