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  • James

    You’ve exaggerated the potential for gold production rates to affect the purchasing power of gold. The annual world gold mine production is tiny in comparison to world stocks of physical gold. If you speculate that technological advance may allow economic gold production rates to double, the debasement effect of that is still small because annual mine production would still be a tiny fraction of the tens of thousands of tonnes of gold held worldwide.

    • JP Koning

      That’s probably true, but I’ve left out the demand side of the equation, which can have significant influences on the purchasing power of gold. For instance, if a few large actors suddenly start to hoard the yellow metal, that will push up its value and compromise its capacity to act as a stable measuring stick.

  • Yes you are right, global gold production is smaller than the physical gold of the world. If you think that technological advances can allow double gold production to double, the impact of its impact is still small as the annual mining production will still be a small fraction of tens of thousands of tons gold that will be held around the world. While, you can keep your gold safe in form of bullion bars along with you in your pocket, recently I have purchased Gold bars from http://www.bullioncase.com/ with bullion case that perfectly fits my pocket.

  • Egil Monn Iversen

    Every gram of gold that exists on this planet is owned by someone. It is sold even before it leaves the gold mine. So demand is infinite.
    And the gold that is in the ground and has not been mined yet is owned by the state that controls that land area.
    There is always a buyer that will buy gold, the question is the price. But as all gold will always be bought, the price is obviously right for some seller.
    Think long and hard on that one…

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