The Economics of Gold Mining
When our friend Dan Oliver releases articles I always take note. Dan is one of the best historians for gold that I know. He is able to look at the past (I’m talking hundreds of years back) and relate it to what is happening now. This article is no different where Dan looks at how gold is mined and the economics that come into play.
I did analysis of gasoline prices in relation to silver and discovered that the price has remained within a constant 10 – 40 cents (1 to 4 silver dimes). In my paper I noted that back in the 70s before we went off the gold standard that NO ONE. And I mean NOT A SOUL ever complained about gasoline being too expensive SPECIFICALLY FOR THE POOR.
Anyone. ANYONE could purchase gasoline even when cars only got 8 miles per gallon. But when gasoline hit $5 per gallon all you heard about was the poor and people in general were smarting from the price. Even with cars that were getting at least three times the mileage and the price of gasoline was only 20 cents in silver!!
It became clear to me that fiat currency was making EVERYONE poor. What a travesty!
Thanks Nixon!! : (
As long as we have fiat……….gold is going higher………..