For us gold claim owners, the price of physical refined gold is important in many ways and it’s an item that we need to pay attention to on a regular basis. The decisions we make concerning exploration program expenditures and property acquisitions are in many ways affected by the price of gold. The value of a gold deposit in the ground is governed by many factors: including the grade, location, and the costs involved to get it out of the ground, milling and refinery costs, purity level, among other factors, not just the market price of gold.
Yet it is the price of the end product that ultimately becomes the main driver in determining if any gold deposit can be mined at a profit, which in turn has a significant impact upon the “In Ground” value of discovery or property.
A Gold deposit only become a mine when the price of the end product is high enough to cover the costs of production and hopefully make a profit. Hard rock mining is nearly always more expensive than placer mining so the price of gold has a bigger effect upon which hard rock deposits become mines and which ones do not, and at what time. Deposits with high mining costs are the last to be developed and the first to be shut down when the price of gold is low.
With all things being equal, for the claim holder, the higher commodity prices go (gold) generally means that your claims will increase in value. If you have a good location with low cost access and you have good grades your property will increase even more in potential value above other claims that have lesser attributes.
To read more on gold and opinions where the price may reach go this link Will we see a $5,000 per ounce gold price?
A Gold deposit only become a mine when the price of the end product is high enough to cover the costs of production and hopefully make a profit. Hard rock mining is nearly always more expensive than placer mining so the price of gold has a bigger effect upon which hard rock deposits become mines and which ones do not, and at what time. Deposits with high mining costs are the last to be developed and the first to be shut down when the price of gold is low.
With all things being equal, for the claim holder, the higher commodity prices go (gold) generally means that your claims will increase in value. If you have a good location with low cost access and you have good grades your property will increase even more in potential value above other claims that have lesser attributes.
To read more on gold and opinions where the price may reach go this link Will we see a $5,000 per ounce gold price?